Good article but not the final picture.
Ebooks at the price $9.99 are a transient flash: the reality is the flood tide of books at ($5 to) 99 cents.
This is both good and bad: a lot of ideas that have been effectively banned can now find an outlet in the e-book world. World history and the Eonic Effect is a good example (it was also one of the first POD books in 1999): it contains of view of evolution available nowhere else.
Also, the kindle reader is in fact surpassed by a simple kindle app on a full computer: the full two page spread is highly effective and makes reading a book feel like speed reading.
An issue is the need for an independent library of ebooks in a general format not controlled by amazon, and a right to quote (cut and past) selections from ebooks for scholarly or other purposes.