My book is self-published in paperback (Lulu), Kindle (Kindle platform) and also ePub (Lulu).
The way I see it is that it is incredibly difficult for new authors to find even an agent, let alone a publisher. I see it now as being in a band, where you make your own CDs to sell at gigs, and build up a local following before looking for a record deal.
Many successful self-published writers of fiction publish their novels for 99p and then develop a readership that way. They can then start to sell novels for £2.99.
My book of course is specialised non-fiction so I have built up interest with a blog, magazine reviews and a facebook page for it.
If you do self-publish, it can be a great way for other related things such as book reading events etc.