I came across this article discussing negotiations and a possible settlement to avoid a lawsuit over ebook pricing.
U.S. Warns Apple, Publishers: Justice Department Threatens Lawsuits, Alleging Collusion Over E-Book Pricing
Personally, I can't see most readers happy about paying more for an ebook than they would a mass market paperback and, that except for a few really popular titles by best-selling authors, mass market paperbacks will largely disappear.
The higher ebook prices by the large publishing houses, I believe, assist sales of my novels. Gryphonwood Press (my publisher) has settled on $2.99 for Flank Hawk and Blood Sword. They tried each title at $3.99 for a short time, but sales didn't do nearly as well. There are a number of reasons I think, mainly competition with other independent press titles and the fact that I'm not a well-known author. Truth be told, if there is a settlement and the prices for the major publishers drop considerably, it'll probably impact sales (attracting readers) of my novels--but it'll benefit readers across the board.
I found the discussion of the 'Agency Model' being an effort to stave off the growing dominance of Amazon in the electronic book industry an interesting perspective, some of the notions of what may eventually come if there is a settlement, and the fact that simply due to time and cost, publishers/Apple, etc. may have to settle rather than fight it out in court.
My novels are available as ebooks through Amazon, B&N, Smashwords, iTunes, and a few other places, but Amazon's Kindle has attracted the most readers, although my publisher has indicated for some Gryphonwood titles, sales through the Nook are showing an increase.
If you're an author or a reader, I think you'll find the article interesting.