Go on over to Joe Konrath's latest blog post and read it.
Back? So soon? Cool! Ok, so, here's the question--is he right, and if so why; and if not, why?
Personally, I agree with him: e-distribution will eventually be the main and hardbound sales will be the niche that collectors go to for the rarities. Writers deserve more than the 17% they get, I understand marketing, shipping, and all that--but at some point you have to look at the picture and say "No way, baby." That's how Locke got his deal, and they (S&S) folded to that pressure. They WANT the sales. Badly. And if someone wants something that bad...they'll do anything to get it. As a result, Locke "won."
Can this be a repeatable trend? You tell me, I only work here....