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Here's another reason why advertising subsidizing e-books is good: Ads depend on more people seeing them.
E-books already are renowned for the fact that they can be shared, even pirated. That means more and more people who can see the e-book. But to an advertiser, that's a good thing... more people will see their ads! Sharing and pirating will actually be doing advertisers a favor! So advertisers can put an ad in an e-book, and expect more viewings than the number of people who actually buy a title, depending on the popularity (and availability) of the e-book.
This can also aid format standardization, because any advertiser is going to want to advertise in an e-book whose format is read by the most people.
It would be hoped that the ads would not be so annoying as some TV ads... maybe no worse than a banner ad on the beginning or end of every chapter would be acceptable to most readers, though clustering them in front or in back would, I'm sure, be preferable.
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