Actually you can get it faster by downloading it from your kindle.

This is exactly what I do, which is why it frustrates me so much when some authors/publishers/wives of dead authors (like with the Wheel of Time series) won't allow the release of the ebook until well after the hardcover. Instead I resort to piracy because the whole reason I got a kindle was to avoid buying physical novels and particularly hardcovers, since I travel/move countries so much.

Publishers and authors and whatnot who do this are just insane. You should tap into the fact that many fans of popular fantasy/science fiction are also gadget freaks, and allow them to buy your books when they come out instead of losing sales due to piracy.

There's only one way to compete with free: easy.

You are 100% correct. Perhaps this argument only stands true for movies.