Have you seen the standalone novellas for sale in your local bookstore? They're novellas that were previously published in anthologies, now being published as slim individual volumes for $2.99 apiece. Not a bad idea, really, considering how many of us buy anthologies for just one author. I'd like to see them try it with new novellas, and perhaps they will if these sell well.
How much do you want to bet that e-publishing had an effect on this particular decision? Readers are obviously willing to buy standalone novellas... they do it all the time with ebooks. You have to figure traditional publishers have noticed that (although they may well have been influenced by Brava publishing Alison Kent's standalone novellas this year, too). It'll be interesting to see if this concept takes off with print readers the way it has with ebook readers.
And on another topic, the winner of the contest below is SandyL. SandyL, please email me at firstname.lastname@example.org and let me know your address so I can send your book. Thanks!
And finally, don't forget-- Sylvia Day and Shannon Stacey both have their first books with Ellora's Cave coming out today!!