Gadgets and pricing

Some gadgets are cooler than others. This one, Sony Reader is on the better side of the world. The most shocking thing about electronic book reader is the pricing of the books. You can buy a mass market paperback on amazon.com for 7.99, usually in 4-for-3 discount, so you can get to 6 dollars easily (yeah, that's a half of what you pay in Czech Republic).
Electronically, it costs about $5 or more. That's just crazy. Where is promotional pricing? Where are the printing, storing, selling costs? Why would I buy DRM-protected book for $5, if I get a physical, paper copy for $6?
It looks like another good idea (e-books) will be killed by MBA/big CEO style pricing. A song costs $1, a TV show costs two, and these have negligible printing (etc.) costs. So just sell the books for $1-2 and you will sell them much much more. Because even people who just plan to read the book will buy it.