This is a prime example of how this development could end up hurting consumers. For those of us that strongly prefer 'deep' books rather than ones released in chunks, the economic disincentives facing authors of such works suggest that there will be fewer options available in the future.
Of course, this isn't unprecedented. Dickens used to publish serially (partly because publishing and copyright enforcement was a bit of a free-for-all back then), and even the book-length versions of the novels had to be subsidized with advertising to offset the piracy losses. I have a copy of Great Expectations with advertisements for laundry soap and brass polish, which were aimed at the servants who were the target audience for the book.