Kindle Price Trajectory

Some speculation that Kindles will eventually follow the razor and razor blades model at the Business Insider - see chart below. I have less problem with the $135 for the Kindle than I do for the ridiculous price of the books. I'd be happy to have a "free" Kindle, but I can't see paying extra for an eBook. Sure, it has advantages, but the cost to sell it to me have to be lower, too. Seriously, Amazon's incremental cost must be almost nothing. And there is always the chance Amazon could delete the book from my device. I know that they are looking at ways to enable loaning eBooks, but nothing beats the simplicity of sharing a hard copy.

For example, I bought my used copy of Atlas Shrugged at McKay Books for about $8. The Amazon alternatives:

Paperback - $14.66, Kindle Edition - $18.99