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I didn't really mean you should sell it for 9.99, just that you would make at that price as much money as with your 20$ book. Selecting a price is difficult and without data even more. What you make is (profit per book) x (books sold). And you generally sell more books at a lower price. So there is a theoretical sweet point, but it is different for each book and time.
What I meant with you want to be in sales is, that sales are promotions. You are more visible for a short period of time and hopefully gain some traction.
I don't publish, so I only know what I read, but there are different contracts. One is the kindle exclusive one. Then you are only allowed to sell through Amazon. You get some benefits, like sales and other promotions and your book is in the kindle unlimited subscription service. That contract you can terminate after 90 days. If you don't go exclusive, you can sell where ever you want. There could be some catch like you aren't allowed to charge more than on amazon or that they can price match other vendors. I don't know the exact terms. Generally speaking: you won't get a contract as good as amazons with any big publisher out there (but amazon of course doesn't do anything a publisher does for you).
Amazon takes care what file to send to the customer. They accept a bunch of sources, word, epub and mobi.
Don't know what look inside has to do with piracy. It is just a preview. Even Google scans respect your ip outside fair use (and they scanned paper books). Don't know what ocr has to do with ebooks you buy from Amazon.
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