CR, you've turned this into a "paper vs ebook" argument, but I think you miss Strosss point: Amazon's monopolistic stranglehold on distribution forces the price down which puts publishers out of business. This results in Amazon being the dominant publisher, working directly with authors. But it also allows Amazon to dictate to authors what they will pay, just as they did with the traditional publishers. This is not "free market", it is a monopoly no less than Microsoft was, and it's not good for consumer choice.
Second point: It may not seem like it here at Slashdot, but the desire to have and to hold and to read "real" books is not dead. Certain segments of the current generation might feel that way, but I don't see it. The bookstores in my town are always busy, the library in my town is always busy, and many of the books (of the so-called "dead tree" variety) are often on hold by several library patrons before I get to check them out. I suppose you're going to say "What a quaint idea! To check out a book!", but many people still enjoy the experience of turning pages...
I know I'm probably the minority, but when I buy a technical book in electronic form, I immediately print it out and put it in a three-ring binder, much easier to locate what I'm interested and flip back and forth between sections... And here's the high-tech sacrilege: I print them out single-sided with wide margins. I use the blank side for notes...
Now get off my lawn.