Smashwords and libraries

So here's the interesting thing about this Smashwords blog post -- "Based on our survey, we expect Smashwords authors and publishers will provide their books to libraries at lower-than-retail prices."

Hmm. Some publishers want to charge more, sometimes WAY more than retail. But authors, the creators, want to charge less. Which is better for authors? And which, gentle reader, is better for the public, and the public library?