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I'm very much in favor of Baen's model, but the company that's likely to provide the best argument is Fictionwise. I've spent quite a bit of money there, all on Non-DRM books, what they call multi-format. I've never spent a cent on their DRM books. If Fictionwise can get enough data (and present it to publishers) that people spend more money on non-DRM books than on DRM books, both in number of books bought and total sales, they may be able to convince publishers that removing DRM will make more money.
Hard to argue with that.
The bottom line is where the battle has to be won.
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