For those of us who work for non-profits and who don't make much money but do this out of love this saddens me. We publish things other publishers won't touch like poets outside of the mainstream and regional histories, journals that allow others to expand on fellow scientists' work. We do good work, and we do it for the community. Not all of us are out to make money at any cost.
Once again I have to go back and say not all publishers are big commercial publishers. University presses are non-profit, we publish scholarly books that are used by researchers and students, as well as things like regional histories. We also publish scholarly journals which are many times made available for free through sites like Project Muse and JSTOR.
We barely break even, people are definitely still reading our books, and we're absolutely not trying to crush the little guy. Please don't lump us into one homogeneous mass, because we're very, very different from our big commercial cousins. Things like this affect us too, and we still have costs to offset though we're not-for-profit institutions. We are no longer flush with subsidies from our guiding institutions, and we're doing the best we can to innovate and embrace digital technology.
Publishing is not some monolithic establishment. There are many different kinds of publishers, and some of us are doing our best to work with our customers to find the right price and the right technologies.
I think everyone is forgetting the non-profit university presses - scholarly publishers who still have very real costs, but for whom the pricing on an ebook is crucial. We still must pay copyeditors, typesetters, marketing, etc, but our books are niche and will not sell hundreds of thousands of copies. By law we can't make a profit, but many are struggling in the new marketplace to break even. There are many costs associated with creating an ebook, and to be forced into losses with them are killing us.
This has happened to me more than once. I've literally sat credit card in hand, trying to pay for music, only to be refused. What did I do when I exhausted every option to pay for the music? I fired up my bittorrent client and downloaded it. Screw em. If they won't take my money then screw them.