Publishing, warehouse management, shipping, etc. And all you drop of the e-book price is $1? Unacceptable. Amazon, you're no longer the only show in town. I've stopped recommending the Kindle to people because the cost v. benefit is all in cost. Dump big cash up front so you can save Amazon, the publishers and the distributors some money. Amazon doesn't set the prices, but they can just tell the publishers that they won't sell an e-book at that price and let them decide if they want to make their publishings available to the market or not. Sorry... I'll wait for the bit torrent or a used copy.
This is exactly the reason I don't buy ebooks. They should cost MAYBE a quarter what they do and the publishers/writers would make the same amount of money as they do with printed books. Ebooks cost fractions of a penny to manufacture and distribute. They need no warehouse. They need no sales people or cashiers. There is no paper. There is no printing. There is no binding.
It's a rip off plain and simple and I won't buy it.