The Author's Guild have responded to the events of last Thursday. Here;s the best part:
4. To a large extent, publishers have brought this on themselves. ... Knowledgeable authors and agents, however, are well aware that e-book royalty rates of 25% of net proceeds are exceedingly low and contrary to the long-standing practice of authors and publishers to, effectively, split evenly the net proceeds of book sales.
They also worked out the economics of the Wylie-Amazon exclusive deal here. Here's the takeaway: Authors will get 4 times as much under this deal as under the standard ebook contract. (I'd say that justifies cutting out a small part of the market.)