One of the things I see when gallivanting around the net is industry people talking about how we are in a "self-publishing bubble" and how they look forward to things settling down and going back to normal. I'm sure the buggy whip manufacturers felt the same way when the automobile started to take off.
Living in Pittsburgh, I am very familiar with this mentality, which is essentially a staunch resistance to positive change. This area started to boom after World War Two. Every single other nation with any industry of note had been decimated. We had a monopoly on manufacturing and other industry here in America. It set the stage for American dominance that would last half a century. Labor suddenly had unlimited power, and they used it to gain advantage and improve their lives. They received amazing pensions, great health benefits, and middle class salaries with nothing more than a high school education.
However, the world has now caught up. So here we are in the steel buckle of the rust belt. The once great steel town has lost its factories and mills to the right to work south, Asia, and other parts of the developing world. Labor there is cheap, and money will always go where it is treated the best. The only powerful unions left are public sector unions, who sit across the table from people who's political campaign they financially support. They hang on to the mentality that that post World War Two fantasy land is the norm, and not a once in a national life time event. They are unable and unwilling to admit change, even if their region is constantly broke because of legacy benefit expenses, such as lifetime health insurance and pensions.
I believe this is similar to what is happening in the publishing industry. This is not a bubble. It is a seismic permanent paradigm shift. Amazon has cut the "big six" off at the knees. They are putting traditional bookstores out of business. In this area, we just lost our final Borders Book Store. Barnes and Nobles was fortunate enough to develop the Nook (My book will be available on the Nook and other platforms in early June), so they are holding on. And while going to the book store is still a wonderful experience, I personally find myself going there for the social aspects and shopping a lot less. It is so much easier to just go onto Amazon and order what I want online.
So, in closing, welcome to the publishing revolution! It is a very exciting time to be an author.