Why self-published authors should side with Hachette
The above makes the blazingly obvious argument that the higher the Big 5 price for a book, the more room indie authors have to charge less and still do reasonably well.
What would really kill indie would be for Amazon to not only drive down Big 5 prices, but also forbid sale of DRM'd books. Then, indie authors would lose not only much of the price incentive, but also those readers who choose indie to avoid DRM.
A weakness of my link is that if Amazon, relatively speaking, wins this negotiation, and a poorer Hachette starts producing lower quality books, that could help indie authors by reducing big publisher competition. But I'm not sure anyone here, other than me, thinks there is significant risk of such a quality decline. And I think it would mostly be seen with non-fiction, due to the higher cost of travel and research.
So indie fiction authors would, on balance, lose big if the Big 5 loses.