Basically, if you aren't meeting people's needs, they will find somebody else who will. If your economic model isn't meeting people's needs, they'll replace it with one that will. If your system isn't managing the main flow of activity, it's a failure, and the real system is wherever that main activity is. What we're seeing now in the shakeup of the publishing/literature industry -- and to some extent, media in general -- is the process of consumers declaring that the current options don't meet their needs and they're exploring other options, kthxbai.
You aren't going to make money by trying to trap people where they don't want to be and aren't getting their needs met. You need to find a way to meet their needs and make a reasonable profit in the process; you need to go where the interest and activity are. You also need to treat people decently, and expect them to behave decently. If you mistreat them, they will not hesitate to mistreat you in return and you will have no moral high ground to complain about it.
I'm keeping my eye out for a subscription-based e-library where you can read whatever you want that's in the stacks without the stupid restrictions that the libraries, publishers, and software are currently promoting.