If scanning and ocring is a "great expense" just ask a college student.  I know that everyone wants to make their share.  Obviously, the author deserves it, but with new distribution channels, publishers and traditional booksellers will see a decline, not an increase in margins.  Just as the TV switched from a few  major networks to hundreds of channels and then the internet, cell phones etc, the publishing business will also change.  There will be consolidations and bankruptcy, but I don't think consumers will buy the "this is a break even situation for us" line.  It just doesn't make sense.  We know that paper, ink, shipping and warehousing cost real money and employee real people.  If publishers can't adapt to the new environment they probably should just go away.   Yes you may have to hire new people to distribute an ebook or to edit different versions, but we need to start looking at offering extras to add value to the ebook.  Why not offer your notes and links from your publishing software?  Why not offer book club notes and ideas?  My wife has her book clubs and she does decorations and food to go with it.  Why not recipe links and decorating ideas?  Why not offer bundles with the audiobook?  I'm just saying, if you don't want people to complain about the pricing, increase the value.  We have a fairly new technology here, let's make the most of it.  BTW, Mr. Hyatt keeps talking about the average price of $8.81, but let's face it, you get a new ebook reader and you don't mind buying a few of the classics for 99 cents.  I'm sure that brings down the average a little.  I'm also not sure about benefits to the author unless you can take advantage of the marketing available with ebooks.  For example, if you liked this you may also like this.  I'm sure that Netflix has gotten me to view many movies that few people would have picked up off the shelf at Blockbuster.  I could go on forever, but one more thing, the editing of different versions  and ocring  etc could be done from remote locations (scan it in New York, OCR in Nebraska) like a college campus.  I'm sure college students work for less.  The technology is changing.  Change the process to adapt.     