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Of course they can.
Baen have already shown one model to profit off them without DRM. There are others. This is a space where books are considerably behind - some of the stuff people are currently making in the games field makes a mockery of your statement in amusing ways.
And there is a difference between an Author's copyright, his moral rights and his economic interest. DRM only protects the first of those, very arguably infringes on the second* and certainly works against the third.
The music industry has surrendered the control and is treating MP3's no differently to CD's in licensing terms. So they disagree with your contention as well.
(*derogatory treatment: "treatment of a work is derogatory if it amounts to distortion or mutilation of the work or is otherwise prejudicial to the honour or reputation of the author or director".)
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