This was a interesting read and the OP makes a good point. But couldn't the publishers just make a deal with e-book reader makers (which are struggling against Amazon too) and create a DRM "open" standard?
By the way, I'm almost only buying ebooks from Amazon lately and, despite the convenience, this does make me pretty uneasy.
That's already happened - the Adobe DRM "standard", and readers like the Kobo. It's going nowhere, because the selection of ebooks is much smaller than Amazon's, so few people want to buy one of their readers, and you can't read those ebooks on the kindle, so no-one buys the books either.
If they sold DRM-free ebooks then there might be a chance for other ebook stores to get established selling to kindle owners (though given how well integrated the kindle and its store are, I'm not sure), and then amazon might be forced to sell DRM-free ebooks too and at that point the market in readers could open up, and it'd be music all over again (where iTunes is still the 800lb gorilla, but no longer in a monopoly position). You'd think book publishers would learn from history...
I'll be glad if the publishing industry chooses DRM-free as their standard. But that's unlikely. And if the standard will be pushed by the editors - or if they adopt Adobe's one - I guess there will be a lot of content...
I suspect if they tried such a gambit, AMZN could -- justifiably -- call for a DoJ investigation into unfair restraint of trade. (Or just ignore it altogether, insofar as AMZN has still got over 60% of the US ebook market.)
Besides, the whole point of DRM is to impede portability. What's got the publishers into this mess is being more concerned about piracy (and therefore opposing portability) than about empowering a hostile monopsony. The quickest way out of the quagmire is to open up.
We saw this before, with music in the iTunes Store: 2003, everything is DRM'd up the wazoo. 2010: suddenly Warner Music are happy for Apple to sell you un-encrypted downloads. Luckily for the music cos, Apple are primarily interested in selling hardware. Amazon's priorities are different, and much more dangerous ...
In one important aspect music differed from movies and books: Music was never in a copy protected format. The point of digital songs with DRM was absurd, because you could just rip & burn an original CD. But movies were copy protected even on VHS cassettes. DVD and BluRay are easy to rip/burn, but pro forma they have a DRM. And ORC scanning of books is inconvenient. It makes sense to at least try to establish a DRM for digital books.
But it is true: "All this has happened before. All this will happen again." (So say we all)
iTunes DRM helped not the big labels, but turned out to be a (small?) competitive advantage of Apple. Steve Jobs just didn't care, because Apple is in the business to sell the razor (iPod). This is a compelling analogy what happens now in the eBook disruption. With the difference that Amazon is in the business to subsidize the Kindle plattform to sell more blades (books).
By the way, I'm almost only buying ebooks from Amazon lately and, despite the convenience, this does make me pretty uneasy.