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I have read that many authors expect the old publishing model (authors getting advances, etc..) to go by the wayside as e-books become more popular. Part of the reason for the advances is the long lead time from the time is complete to when it hits the stores. That is mostly because there are only a few printing companies (i.e. publishers don't actually own the printing presses as it were), so there is always a backlog. While there will still be a need for editors, and I can see value in publishers who select and market certain types of books, especially for new authors, I think a lot of the current expenses will go away.
The bottom line is that the price has to match what people are willing to pay, not what the publishes want to charge.
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