I don't know if I am as gung ho about this idea as others are. The difference between the best analysis book (i.e. Rudin's Principles of Mathematical Analysis) and the average analysis book is so significant as to justify the far higher bounty required to move baby Rudin into the creative commons.
I think you have a good point. OTOH, Rudin isn't really an example of the problem these people are trying to solve.
Yes, Rudin is good and worth the money. The students who buy it usually know this, and often plan on keeping the book for the rest of their lives.
The real problem is that huge numbers of people have to buy a brand-spankin'-new college algebra text for $180, and then can't sell it back at the end of the semester, since the department has decided to change to a different text. A free, quality text would benefit these people greatly.
(Meanwhile, the low price for a used 2nd-ed. Rudin on Amazon today is $25 including shipping.)