First, for clarification: Unlike other agencies, the Knight Agency is absorbing EVERY single cost & responsibility for digital publishing (covers, editing, back cover copy, ISBN, marketing, conversion, uploading distribution etc--everything except copy editing), so that all the author has to do is write. Many other agencies are making the authors pay for all these other costs and/or undertake the responsibility of making them happen, and THEN taking 15% on top. I want to make it clear that the Knight Agency is not doing that.
And now, below is my comment that I posted on that client's blog. Please, feel free to tweet this, copy and post (with credit) and to spread the word. Information is power, but information is only powerful as long as it's accurate.