Thanks, Daniel for your thought-provoking post on e-publishing yesterday. I'm going to add some of my own thoughts today as a follow-up.
**NOTE: When I checked this morning, the Smashwords website was having problems. If the links aren't working when you read this, I hope you'll come back and try again--it's been one of those days.
My first publications were for e-publishers. This isn't the same as writing for a print publisher that also creates digital versions. Why? My first submission, a short-short story called Words had been accepted by a print magazine. Unfortunately (although not all that uncommon, I discovered), it went out of business before the story appeared. There's not a big market for short stories, and I moved on. A while later, I discovered a new romance publisher, The Wild Rose Press. They took short stories, so I submitted Words to them. It was accepted, and I was now a published author. Of course, back then, the only way to buy the story was through the publisher's website, and there weren't a lot of e-readers around. Most folks read e-books on their computers.

Fast-forward a year or so. I had a novel, Finding Sarah that was outside the relatively rigid box of what the New York print publishers were buying. I submitted it to Cerridwen Press, a new imprint of what was then the 500 pound gorilla of e-publishing, Ellora's Cave.
A brief digression here. Ellora's Cave filled a niche that readers wanted. They published erotic romance, and called it "Romantica." Readers could purchase and read these books and stories from the privacy of their homes. No carrying around steamy-hot covers.