The question of which is ultimately better for the consumer is non-trivial to my mind. Not to mention that, because publishers tie author royalties to the physical cost of production, the authors stand to lose a lot in this struggle.
If something won't be profitable to make, it won't be made. The best price for the consumer is the lowest price at which the item desired by the consumer can still be produced.
If something can't be made it's price is infinity. If it's custom but possible to create it's price is high. If it's mass produced it's price drops. If it's pubic domain it's free.
PS: Saying people will not make it at some price just means it's actual price is higher.
