I strongly favor the "symbolic price" ($1-3) model. (As part of no DRM, no geographic restrictions, allowing reasonable fair use such as backups and format shifting, etc.)
It's a better deal for readers (well, sure, not as good as theft, but still good) and a much better deal for the authors, since paying them directly means they get much more for each ebook sale than their paper book royalty.
It's also an approach that appeals to our better natures: People want to support the creators whose works they enjoy. They understand that books take a long time to write and that authors have bills to pay just as everyone else does.
Most reasonable people understand the equation:
(1) the author derives income from writing or
(2) people don't support the authors they like and writing becomes a "fit it in where you can" endeavor after the day job to pay for a roof, food and family expenses.
(2) means a lot fewer books by authors you like will be written. By supporting an author, he or she is able to spend more time creating more works for you to enjoy.
Bill
www.BillSmithBooks.com