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Should be at most half pbook price
I'll pay up to $4.99 for an interesting ebook, and up to $7.99 for a "must-have". I buy most of my titles at $0-$3.99. Free offers often result in me buying a whole series or the rest of that author's titles. I've discovered a lot of new authors through free offers.
Price-fixing (especially $20-ebook price-fixing aimed specifically at Australians) has resulted in me no longer buying Agency titles.
In any case, an ebook shoud cost at most half the pbook price. The ebook is not transferable or resellable, and it doesn't incur costs for printing, warehousing, transport, retail display, counter-staff wages or returns.
Like other commenters here, I prefer ebooks without DRM, having been stuck with hundreds of unreadable Secure Mobipocket titles after migrating from Palm to iPhone (Amazon still refuses to license the Mobipocket format to any third party). With different retailers having their own flavour of Adobe DRM, and Amazon having their own DRM entirely, no format is "secure" for the purchaser.
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