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I voted number 2, but it's still wrong: if they (the editorial world mob) see that ebooks are not selling because consumers perceive it as wrong for paper books to cost less, that simply means they have to artificially raise paper books prices.
way to go is really self publishing: the Wool guy being a nice example of this. Give old leech publishers the finger and get it on stores for the right price for media which doesn't require anything even remotely close to tons of paper, ink and press + storage + trucks driving all way down the country + shelf space. digital goodies and replication are terribly cheap compared to that. You'll do just fine...
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