I'm thinking about it too. I can see that $2.99 price point working for bringing out of print books back into "print". Heck, I was thinking about pricing Goldfish Dreams around $2.99 – $3.99.

But that's because the costs of producing that book have already been covered, broadly speaking. The physical materials and printing is part of those costs, but a small part. Meaning sure, we could hack prices on new e-books or print books, but who's getting cut out in those cases?

I'm still thinking it through myself, but I'm also a little concerned at reading about how (not from you, but elsewhere) $6.99 is just too much to pay for a newly-released e-book.