[Mare of Earth]

I agree - they should be absorbing their share of the initial costs - however, they shouldn't be absorbing the costs of producing a hardcover. It seems the way the current pricing model works is more:

Production costs for hardcover and ebook release/total number of potential sales = same price for both editions.

This production model I don't agree with. If they want to milk the hardcover sales, then delay the ebook release and have the ebook release at the same time as the paperback. The last TOR book I purchased I had to wait a few months before the ebook price became comparable to the already released paperback price, long after the hardcovers had been clearanced out.
Just like with paperback vs. hardcover before ebooks, I generally have so much to read I am more than willing to wait for the cheaper edition (cause I'm poor), I just see it as massively unfair to expect ebook readers to pay the hardcover price when it did not cost that much to produce the ebook. Pick a profit margin and stick to it across the board, instead of gouging those of us who purchase digital formats.

I moved to ebooks due to space and flammability issues, and spent many years reading my ebooks on my computer or my Palm M105 and it's successors. I finally got a Sony 505 last spring for $125, and the screen size is much better! I am of the people who wait for cutting edge to reduce in price to where I can afford it without having to eat ramen for a few months to make up the difference, and am happy to stick with my thrifty ways - I do, however, wish for my business to be appreciated and treated as equal to those who purchase paper books!