Amazon doesn't set the price on kindle books, the authors do. If an author wants to sell the kindle version of his book for $100, he can price it that way.
While the demise of bookstores is surely a sad reality, I am much more concerned with the pressure on daily newspaper revenues. We will get the same information digitally that we now get through brick and mortar bookstores but newspapers -- as despicable as they frequently are -- are being replaced by a whole new paradigm ... not just a new delivery mechanism. The digital age has its victimes as well as its opportunities. The Washington Post and the extremely well run small urban bookstore will survive but bookstores and daily newspapers in general simply will not stand up in the face of the digital competition. It is the small and meduim sized cities that will be the worse for wear without their newspapers.
Well, you can buy used books when they're selling off deadweight and/or donations. There are a couple of websites that list book sales by libraries... There are literally 100s of book sales every month in the US...
I believe many authors don't really choose the price, the publisher sets the price, and in case of Kindlle it's Amazon putting pressure on publishers to offer a Kindle version at a low price. The publishers go along because they think they 'll get more volume on Kindle sales.
There are incentives to choose a price within the range Amazon prefers but in fact they offer an incentive to price above a certain floor. Like anything else if you don't like their deal good luck finding a more traditional publisher. It's nice if you can get one that not only likes your work but puts their significant marketing muscle behind it. Not so easy to find.
My wife has published four novels on Amazon within the past two years and she chose the price on every one of them. In fact, she changes the prices all the time. For example, she occasionally makes one book in a series free in an effort to get the reader to purchase the subsequent books. In the event an author is represented by a traditional publisher, then of course the publisher is going to run the show because the author has already signed an agreement with that company. That doesn't really have anything to with Amazon being evil though.
I've always thought that as well. The other day someone showed me their new Kindle, or whatever they call them now. Whoa! I think I may change my mind. Take a look at them.