I don't think that it is scaring consumers away, but might discourage them. And from a distributor point of view and publisher point of view, a standardized format can only increase sales. Otherwise, at some point, what is happening to the music industry will happen to the print industry.
Standardizing should increase competition between eBook platforms, and increase quality. All in all better for the consumer and distributor.
So, as a person who wants to read eBooks, I want:
o A single format that I can read on any platform or type of ebook reader that I own or want to buy.
o A single format that I can transfer from PC to laptop to PDA to ePaper to eBook.
o A format which allows me to lend a book.
o A format that will increase the number of choices of titles, because it is a standard.
o That shows content in a reasonably consistant format across platforms.
o Allows me to make notes and bookmarks, which are also transferable across platforms.