My space opera romance is one of the bigger novels LI has published, with a word count at around 100K. It's selling on their website for USD $7.99. Sales have dropped a bit, but it is selling. The sequel will be 30K shorter and lower in price, so that should help sweeten the deal.
Coming from the science-fiction and fantasy side of the genre, where $8 and $9 books are common, I have little problem with LI's pricing. I know many romance readers balk because they've seen equally large books for $4 and $5 from other publishers. Would I sell more ebook copies of Moro's Price at a dollar or two lower? Possibly. OTOH, that book was a pain to edit in the time that we did it, and I'm sure formatting it was no cakewalk, either.
If LI charged $10 to $14 I'd have objections. As it is, I'm okay with it. At my least charitable, I'm sometimes inclined to think that too many e-rom readers have been a little spoiled by their publishers (some of whom may not have had the best quality writing, editing, and formatting to work with from the start).
Bear in mind, if I were self-publishing something similar at that length, I'd drop the price to around $5.99, just to undercut the commercial publishing market. But I wouldn't go lower, except on very special and limited sales.