Not unexpected is a preemptive response from Amazon with all the rumours of an Apple Tablet. Most likely a key learning from the experience of the mobile phone companies that did not even attempt to do any preemptive gestures prior to the highly anticipated iPhone.
As a Kindle user, I am happy to hear that the royalty incentives are for electronic book prices under the US$10 mark. Personally I have struggled for a long time with the high price of books given the nature of the medium and the quantity and diversity of choice. I am more than comfortable with authors and publishers wanting to charge whatever they want but some healthy delivery competition is doing wonders for the reader in both price and quality.
So although this is being considered the year of the tablet (the PC kind), I also think this is the year of the evolution of the book!