Publishing news of the decade

Amazon has launched CreateSpace Books on Demand, which allows authors to upload content and publish direct. CreateSpace is Amazon’s new name for CustomFlix Labs, Inc., which it acquired in 2005. Until 2006, Amazon used a company called Lightning Source for its print on demand service: now, Lightning Source, along with plenty of other print-on-demand services, is a competitor. 
CreateSpace has been offering customers single CDs and DVDs on demand since 2002, and it is envisaged that its new service will provide books in just the same way, aiming to ship titles within 24 hours from when they are ordered. Customers pay the standard paperback price for a book, set by the author, with no setup fees or minimum orders. For authors, books must be uploaded to CreateSpace as PDFs; an author must then purchase and approve a proof copy of the book before titles can be produced on demand.
Amazon’s share of each sale is calculated by taking a fixed charge of $3.15 per copy, plus a charge per page ($0.02 or $0.12 per black and white or colour page, respectively), plus a percentage of the list price (30% for sales through Amazon.com). So a 100-page black and white book sold on Amazon with a list price of $25.00 would earn an author a royalty of $12.35 per sale.
Is this "the publishing news of the decade"? Or is it some way off reality? As Timo Hannay (see link) puts it: "For books, of course, Amazon is the owner of that precious data set. They know more than any other organisation about my reading habits — heck, they probably know more than I do about my reading habits. In contrast, Waterstones knows nothing at all about my preferences even though I must have bought at least as many books there over the years as I have at Amazon. The other players in the current publishing chain know even less………Amazon becomes the ultimate clearing house for books of all kinds (and much else besides), with none of the traditional middlemen getting a look in. Genius."