So who's right, and who's wrong?
Welcome to the world where no one controls the price. No one. Not the author. Not the publisher. And not even the customer. That world is just around the corner, where a complex algorithm figures out the right price point for the book (e, audio, enhanced, print, holographic, etc.). And that price point will be different tomorrow. Hell, it might be different five minutes from now. It's demand-side pricing, and it's dynamic. And doable. And it's coming.
Because number of books sold takes a back seat to number of dollars earned in a post-scarcity world. Would you rather sell 10,000 books and make on average two dollars profit, or 100,000 books and make thirty-cents each on average? Do the math. I'll wait.
The good news is that you won't have to figure it out. Someone will come along and create the Google Adwords analog that works for book pricing. Its job will be to maximize the bottom line. For the author. For the publisher. For everyone.
I, for one, welcome our algorithmic overlords.