David,

I really like the conversation here and some of your points. However, I think a better question is this: "Is the traditional publishing model sustainable?" I started a small non-fiction Christian publishing house seven years ago and was amazed at the broken model the publishing world has fallen into, mostly through the fault of its own starting with the open return policies. I can't see it holding up as authors are discovering that there are new markets and new ways to making a living as a writer without the help of a large publisher.

I'm not sure how well self-publishing with eBooks as it currently exists will be sustainable, but from where I sit, I see publishers needing to adapt to the new market environments by being more nimble, less top heavy, and focusing what authors need most: great editing and sharp marketing. If they can do that, then the conversation will be a moot one. I talk to so many authors each week who have been taken advantage of by publishers and have profited very little. They're the ones giving up writing in today's environment--and that's sad.