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Just FYI, your math is off by a large factor. If Konrath's page totals are 2320, multiply by the recently announced February payout of .0048, he gets approx. $11.14 if someone reads through all his works.
(Also, we don't know what his actual KENPC page numbers are which are not the same as page numbers listed on the product page--from what I've seen, KENPCs skew higher.)
In general though, the process you've laid out is the same, but it's not really the issue. The issue is Amazon contracted with authors saying they would pay per pages read, and it's become clear that they don't have a trustworthy system in place to calculate true reads. They left huge loopholes in the system, vulnerable to manipulation by scammers.
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