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Unfortunately, I couldn't get any more details since the actual site is still not open to the public (it appeared that they were for a short timeframe due to a technical glitch perhaps).
It's true that for some people it's fine when the price of e-books equals the price of paperback (more specifically: hardcover) books. However, I like to argue that the majority of people interested in e-books is not willing to pay the same price for e-books. For one reason, there is a high price of entry when you consider the $300-500 price tag of E Ink-based e-book readers. For another, commercial e-books are usually crippled with DRM which diminishes the actual value of the product (you cannot resell it or lend it as you could do with paperback books).
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