Author: J. A. Konrath
I can hire out for editing, proofreading, formatting, and cover design, and those are fixed, sunk costs. Once those are paid, I can earn 70% on a self-pubbed ebook.
Writers aren't in competition with one another. It isn't a zero sum game. If you have a good book, a good cover, a good product description, and a low price, you can sell well.
When a single author uploading his own books to Amazon can earn more money than a large N.Y. publisher exploiting both print and e-rights, there's something amiss.