The costs of modern day e-books are real, but for many genres markets its possible that buyers are simply willing to tolerate a book that's objectively worse (more errors, worse design, illustration by total unknowns, fonts free sources instead of foundries).
Rather than continuing to participate in the traditional industry, I think a lot of authors will have to self-publish and realize that if they can't give their book the love needed to not "make your eyes bleed" then their work will fail in the marketplace. They can't rely on someone else to take a manuscript and clean it up to a publishable version anymore.
There's just not space for those middlemen and helpers in a lot of genres market, unless you are a best seller.