David Gaughran is someone to pay attention to on these issues. I think the venture he writes about will be short-lived and the market will take care of itself pretty quickly. I may be wrong. But I do think that in the spirit of free enterprise their are consumers who are going to need to pay a price before all is said and done (they already have been, of course, but the suckers who are born every minute have always put food on people’s tables).
That said, the most important thing here is for writers to understand what independent publishing is about. Focused, “hand-crafted,” detailed oriented artists have always been able to find great satisfaction in their work. Readers should go out of their way to support those efforts. This is just another reason to ditch books by corporate houses on principle.