Cameron, thanks a lot for this great "thinking in progress post". I fully agree that scholarly communication is not "a market" in the economics sense, and that the forces that regulate such markets thus can't really work in scholarly communication. You can draw different, and even conflicting, conclusions from this, but it is an important starting point for our understanding how scholarly communication works.

Mathias Binswanger has expressed this much better than I could ever do in his chapter in the book Opening Science.