Everyone’s all aflutter about Amanda Hocking, the 26 year old who has made a million dollars self-publishing books on the Kindle. Read Nathan Bransford’s balanced take here - with many more links.
And people seem to get really mad when Pimp My Novel says ebooks are not a sure route to fame and fortune. I will say that I make much more on my traditionally published books than I do on the backlist I have put on Kindle etc. Check out My books on the Kindle.