Here is an idea for all of the companies trying to get this right.
You need a great reader at a great price. This $400 reader I just heard about from Amazon is not the great price by a long shot. $50 sounds ball park off the top of my head. $100 might be pushing it at today's dollar value for my part of the world.
eBooks should be way less than regular books people.
Have every regular book come with an eBook in a sleeve in the back or have a code printed in it that allows for a free download of the book.
Why this last bit? Best of both worlds for people who like physical books. You get the physical book with all of its advantages, plus you get the eBook with all of the searching, bookmarking, cross referencing possibilities.
Stop thinking about how to milk the people. We are not your cows and goats. Give the people a product that will make things better for them and settle for an honest, decent profit while doing so.
Check my NaNoWriMo Novel in progress:
Danger - A Safe Bahamian Novel