Actually, I think this rocks. Not that I expect you guys to agree with me, but I think you are missing the point here.
Why does WotC care if this product, whatever the price, is "nearly useless" to other RPG publishers? They didn't make it for them, the made it for the gamers. And DRM doesn't make the product "nearly useless" (old debate, I know), although obviously it lowers the value of the PDF in some folks eyes.
A poster above pointed out you can get the print hardcover for much cheaper of Amazon, so why buy the PDF? Again, missing the point. WotC is simply charging the full MSRP for the book, it's actually the same price they are selling the hardcover for (although, of course, you can get it at a great discount at a number of places). WotC WANTS you to buy the hardcover, they'd RATHER you buy the hardcover than the PDF, print books are what Wotc DOES for D&D!
Wizards, like many of the other publishers selling PDF's on DrivethruRPG.com, are providing their works in a different media for a different audience. An audience who feels downloading a PDF of Frostburn off Kazaa for free is theft and aren't thieves (again, old debate), and want PDF copies of the book instead of, or in complement to, the hardcovers. I am certainly in that audience, although I'll admit since I already have the hardcover and (like most of us I gather) have limited funds, I probably won't be buying the Frostburn PDF at full MSRP.
And all this whining about the cost of printer ink and paper. Wotc probably only expects complete morons to buy the PDF and have it printed out and bound instead of simply buying the sexy hardcover. Again, missing the point and the audience. The people who would find this PDF useful will NEVER print it out! It will rest on their laptop's harddrive for easy reference during gaming! (Leastways, that's what I'd do with it)
I hope this "trial run" partership between WotC and DrivethruRPG is a success (although, maybe with the occasional sale on their PDF titles!). Heck, who know? If this does work out, maybe they'll re-offer the PDF's of old 1e & 2e titles in a high quality PDF format that doesn't suck like the PDF's available on SVGames and RPGNow (and that's the quality of the PDF scan that sucks, not the actual quality of the books).