Corey Doctorow has a great stance on ebooks, and one I think more authors need to be exposed to.
Read
Short Term, Long Term and Medium Term at the beginning of his book, specifically:
I’ve given away more than half a million digital copies of my award-winning first novel, Down and Out in the Magic Kingdom, and that sucker has blown through five print editions (yee-HAW!), so I’m not worried that giving away books is hurting my sales.
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I know which example I intend to follow. Giving away books costs me nothing, and actually makes me money. But most importantly, it delivers the very best market-intelligence that I can get.
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Some other writers have decided that their readers are thieves and pirates, and they devote countless hours to systematically alienating their customers. These writers will go broke. Not me—I love you people. Copy the hell out of this thing.
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The more people there are that have read and enjoyed my work, the more of these gigs I’ll get. And giving away books increases your notoriety a whole lot more than clutching them to your breast and damning the pirates.
If more authors started behaving in this way, the market would boom, and legitimate ebook sales would skyrocket. Charge $1.00 per copy if you want, you'll still make millions, and $1.00 is cheap enough for people who want to pirate it to just buy it anyway.