[mgenzel]

Also don't dismiss significant used books market. I hardly ever buy books over $5. Right now, digital books are priced like brand new books, and you can't resell them. There's some price discrimination in terms of how much time elapsed since release and popularity, but, given that I can buy a brand new book on eBay a few hours after it was published (or earlier), destruction of such market would be quite painful for many people. And so far I haven't seen even an inkling of a solution to this issue in any of digital goods categories.