Will Amazon Save Book Publishing?

Jeff Bezos of Amazon unveiled the new generation Kindle today, which got us wondering about the future of the publishing industry. The industry is clearly contracting -- imprints closing, massive layoffs, fewer deals are getting made. Could the Kindle change that trend -- or at least staunch the bleeding? At $10, an e-book is a fair bit less than a typical trade paperback and with the ability to download automatically -- not even the iPod can do that -- traditional marketing tools, such as television and radio interviews, can convert sales on the spot. Perhaps it's too soon to tell, but indications are that publishers are embracing the e-book market. We just completed a deal on a backlist title. We also hear that generic devices are around the corner. Any thoughts?