Sunderstone, there's no need to personally insult other posters when making a point.
What I differ with you on, is that this, or Spycraft, or Arcana Evolved or similar products, does not represent a complete change in the industry; it represents an experiment by industry leaders to see if the time is right for a new class of products - the premium product. I don't mean to insult any publishers when I say this, but RPGs have NEVER had premium products of this scale until recently (within the last five years or so). It's been boxed sets, or paperback books, or hardbacks of 200 or 300 pages. The only time I did see a similar product (the faux-leather-bound magic item comdpendiums from TSR) the company went under a year later.
The Leather-bound PHB a year ago, and the World's Largest Dungeon, taught publishers that there IS a market for such. It doesn't mean the PDF market, and the 3rd party market, are dead; it means that there's a class of gamers out there who can AFFORD more premium products, but have been making up for it by buying a bunch of non-premium products, or a bunch of dwarven forge instead.

If gamers have been buying cases of Magic cards, and cases of D&D minis for years now, why shouldn't they buy a top-end RPG book?
I'm still in doubt about this product; I'm tempted by the purchase plan, but I'll have to see if I want to do it or not; I may just make it a 2005 christmas gift wish list item, instead! (Though my wife may look at me funny for buying a PREORDER).