There's a story on CNET about how an agent has published 20 novels from Mailer, Roth, Bellow, Updike, and others directly to Kindle--bypassing big publishers. The end result is a much higher royalty for the authors, though the author of the piece (Carnoy) points out that these ebooks are too expensive ($10) and quite spartan. Another downside (or perhaps upside if Amazon markets them heavily) is that they're exclusive to the Kindle for 2 years.