I'm happy to say that I have already taken everything you've said into account. I researched self-publishing for months before I began writing my novel and what you have said is absolutely bang on the money. Anyone who knows anything about this subject says exactly the same things.
I'm having the formatting done by a professional and I will also have the book edited before it goes anywhere near Amazon and Smashwords etc. I'm going to try doing the cover art myself, as I'm not too bad with that side of things and the cover I have in mind is within my capability. You're dead right about the price as well. I'm not going to be knocking it out for $0.99 or free. It will be under $3 though.
Most importantly, if I don't think the finished book is good enough, it won't be published at all and I'll move on to the next one. It's my first book and it represents me as a writer. You only get one chance to make a good first impression.
Kudos, sir. Good luck