Agreed.
The issue with textbook publishing is that a student is told to buy a certain book and rarely can use an alternative. If you need a specific book for, say, science, a
specific book will have to be purchased -- and that publisher has a complete monopoly. CourseSmart, therefore, will be limited in the discount it will be able to offer because the textbook publisher will force the price.
On the other hand, if you need to buy
The Canterbury Tales for an English Lit class, you will be able to get a very low prices (or free) option for that.
I think there is a better chance that the iTunes model that works for music will work for books in areas like fiction and not textbooks. In the area of fiction there may be monopolies but the consumer may decide to choose one author over the other if the price difference is great.
The other thing that will determine whether books on mobile media will succeed is whether the user experience is not just the same as print, but better. Many people prefer their music on their phone or iPod now because of portability, etc.
If a tablet offers not just the same experience, but an enhanced experience, then that might just sway users to go with the tablet. Take for instance a history book: a book about WWII designed for the tablet might contain video of Pearl Harbor, audio of great speeches, etc. A cook book could contain not only recipes, but cooking demonstration videos, plus direct links to online ingredient retailers for easy purchasing of hard to find items. A separate option might give the buyer the audiobook version, only this time with graphics.
As usual, my take from the perspective of the media business
here.