Hmmm ... let's do the math:
100 hardcovers sold at full price for $17.95 immediately (and then 900 remaindered copies at $2.00 - $5.00 or less)
vs
1000 ebooks sold at $9.99 immediately
vs
Readers boycotting your publishing house (and its authors) over your total lack (or refusal) of understanding of the ebook market, and of readers in general.