Actually, I'm picking a third choice: I'm pushing Macmillan for a DRM-free open format based solution. (And I'm pushing on a door that's ajar, but jammed: probably most or all of their editorial and many of their executive staff <i>know</i> that DRM is stupid, but changing corporate policy at a large, staid multinational headquartered overseas -- Macmillan is a subsidiary of Holtzbrinck -- is difficult and takes time.)<p>The real solution is for the publishers to switch from wholesale (via channels like Amazon) to direct retail. The agency idea is a step along the way, but not the whole way. Some publishers already have done this: Baen's Webscription web storefront, shared by some other smaller publishers, is a thriving example of Doing It Right.<p>Interesting piece of public information that not many people know: Baen is a private company, about 30% owned by one Tom Doherty, CEO of Tor, itself a subsidiary of Macmillan.