Future of book publishing?

Follow-up to an earlier post. The book publishing business is clearly an opportunity waiting to be exploited. The current economics of publishing business is clearly skewed against the content creators and towards the publishers. In its current balance of power, the publisher premium for risk aggregation and distribution costs has eaten into the content creator - i.e. the market seems to be rewarding the former over the latter, something that clearly does not make sense in case of an artistic endeavor.
As with a lot of markets, the internet has the potential of shaking this up - yet another demonstration of the long tail effect. One such start-up is http://www.fastpencil.com/

The publishing space is an interesting space to watch out for over the next few years.