Comment Kristine Kathryn Rusch on Publishing (Score 3, Informative) 130
Anyone wanting to know how the publishing industry works, including the reasons why and why not to use traditional publishing, should read Kristine Kathryn Rusch's blog "The Business Rush: On Writing."
How to evaluate a traditional publishing company
The dangers of self-publishing with Amazon
Negotiating with publishers (read the second part, too)
How to make traditional publishing writer friendly
In short, if you want to publish your work, read Rusch first. She's worked in the industry for 30+ years. BTW, you may want to buy some of her sci-fi books, too.