I have been bitching (mostly on eReaderJoy.com) about how poor the tools and processes are for making ebooks. It is just weird and wrong that it's much easier for me to make a wonderfully formatted PDF file, which does not display well in small ebook readers, than to make a .mobi or .epub file, which does work well in ereaders, and should be simpler to make because it's just based on HTML and has simpler formatting.
Or to put it another way: it is just way too difficult to make an ebook, people either need a lot of study, or help from a pro. I think it should be a very simple process, once you have a correctly formatted script.
I don't know whether The People's E-book will provide the best solution, but they have the right aspirations.