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The biggest thing that stops me from buying ebooks is disposable income: With three kids at home, my mad money often drops away to almost nothing (especially as I already have plenty to read anyway - and just want new for the shiny factor).
Personally I think a fair price for the ebook of a mass-market paperback is $5-6 when the paperback costs $8. I think that's reasonable.
As for DRM my biggest problem comes from the fact that it makes certain forms of fair use which in theory it explicitly allows effectively impossible without circumventing it.
I normally read on one of two devices - either my Sony 505 or my Motorola Droid - both allow me to read DRM ebooks, and the licenses for the DRM ebooks I buy allow me to read them on multiple devices - but I can't read the same DRM ebook on both devices even though I am explicitly allowed to do so.
The only DRM format I can read on the Droid is Ereader, the Sony can read ADE Epub, PDF or LRF: Neither device can read the other's DRM formats. (I can read Epub on the Droid - but not with DRM.) Ereader lets me use as many devices as I want, but the Sony doesn't support it; I have open "slots" for ADE, but the Droid doesn't support that.
This is what I hate about DRM - it doesn't even let me do what it explicitly says I can do.
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