You again seem to be making some sort of moral judgment about the situation. I'm talking about economic reality.
If authors think that they can make money by charging for copies (which have a marginal cost of ~0) because they think their product is that much superior to everyone else's, then that's great, but that will obviously only work for a small minority of authors, if at all.
I'm saying extracting money from copies is the old game, and it's over. The new game is trying to figure out how to make money from the value you can provide. And the fact is that the technology that's destroying the old model is also enabling new ones. The most obvious business model going forward is toiling in obscurity on your own dime and releasing a free product. If it's good enough, i.e. if people value it enough, then you can crowd-fund (a la kickstarter) the production of subsequent products. Here your value is as a creator of products, not a distributor. That's just the first thing that occurs to me after ten seconds of thinking about it. I'm sure there are many other viable models.
To me, the future looks vibrant and refreshing. There are fewer gatekeepers to our collective culture, we have more direct access to creators of culture, the experience is more interactive, the barrier to entry is lower, and the exchange of ideas is freer. I hope it's a future filled with more Amanda Palmer and less Avatar.