It's a whole new publishing world out there. Here's an interesting discussion between Open Library and Smashwords founder Mark Coker. A brief summary of the ethos behind Smashwords:
"Smashwords represents 19,000 indie authors and small presses who handle the writing, editing and pricing of their books. We distribute these titles to major retailers such as Apple, Barnes & Noble, Sony, Kobo and Diesel. We believe that authors should maintain the creative and financial control of their work and receive the lion's share of income."