I’m in the RPG space myself. Ive basically bootstrapped up a small but profitable publishing company in that scene (
http://shop.swordfishislands.com).
I also like how DriveThruRPG gives drm free PDFs. The watermark is up to the creator (I don’t). I wish they took a smaller cut on their market though. :p
There is also the Bundle of Holding, that does bundles of drm free rpg PDFs and content. It’s pretty great as well.
My personal take is that the ebook/pdf/digital book market is replacing the “cheap paperback/trade” market. I use Kickstarter to raise funds for pretty deluxe offset print runs and am then pretty liberal with the digital copies (buy a book get the digital free, charity bundles, bundles, free in person download codes, etc). This seems to have been beneficial because the “infinite digital” product serves as a gateway to the “limited, special, ‘deluxe’” version.
Paperbacks, even big ones are pretty cheap to produce, so I’d imagine there’d be more of a “sales cannibalism” between a paperback and ebook wing (e.g., I have the digital I don’t need the paperback) so downplaying the digital seems like it would make sense long term for books that don’t make sense to exist in some sort of “deluxe, you’ll want this for 50 years” format.