While it's tougher now to get published as a P-Book, it's easier than it's ever been to do the E-Book thing. The potential is huge for writers who want to get their work out there. It's certainly worth looking into if you're clutching a manuscript that hasn't got, well, physical yet.
Lulu.com is one place a writer can publish their own E-Book (or P-Book). There are other sites too - but Lulu seems to be the biggest.
There are also E-Book publishers out there now who will assess a manuscript, edit and promote it. One of those is NZer Penelope Todd (formerly of Longacre Press) with the brand new Rosa Mira Books who is soon to publish her first E-book and is working on another. She comments
The first manuscript is being edited: The Glass Harmonica: A Sensualist's Tale — a joyous and lyrical novel set between Corsica, Paris, and New England in the late 18th century — by Dorothee Kocks of Utah. We're planning an October launch. I'm currently considering stories from NZ and abroad for the second title Slightly Peculiar Love Stories.Which sounds really E-groovy. Good luck, Penelope. Now must get started on that peculiar love story...