I could have posted this in the comments section of Dear Author's relevant article (here), but my response would have plenty of references to my website which I think that can be misconstrued by people as an attempt to plug my site.
I'm more sanguine about threesome and daddy-daughter stories than Jane. In fact, I see this as a pretty sensible move by new epublishers to create a niche for themselves. As I've blogged recently, new epublishers should offer something as an alternative to Ellora's Cave and other big fish in the small pond if they want to attract any kind of audience or fanbase. Setting up a clone of Ellora's Cave or Samhain Publishing is not a practical business move anymore, as countless closings have shown. Striking out by offering something different is the way to go. Ellora's Cave succeeded mostly because it was the first to offer erotic fiction that is hotter than typical offerings out there. Now that the "sexy" stuff by Ellora's Cave and its countless imitators is so ubiquitous in the epublishing scene, it makes sense for someone to offer something even hotter. And the only way one can get hotter nowadays is by acknowledging the silent majority that visit erotic fiction sites to read titillating tales of incest, adultery, and other stuff.
Oh, there will be people who express moral outrage, just like how there were people who expressed moral outrage when Ellora's Cave started coming out with stories featuring BDSM and polyamory elements, but I have a feeling that many more people will keep quiet and buy, judging from the popularity of incest and adultery naughty stories all over the place from fanfiction circuits to erotic writing sites like Literotica.
At any rate, I suspect that little minnows that offer a more kinky alternative to the current big fish have a higher chance of survival than a random erotic fiction epublisher set up to emulate an established epublisher.
My sentiments are echoed by Emily Veinglory in her response on the EREC blog and I have to say that I adore her description of mainstream romance novels as a white heterosexual female submissive and bald-chested dominant white guy thing, heh. But while she's speaking from an author's point of view, I think the reader will also reap similar benefits from an epublisher offering alternatives to the current formulaic erotic fiction in the electronic fiction landscape. At least, readers will - hopefully - be getting something different from a typical formulaic MMF paranormal threesome story of a blond vampire hero, a dark-haired alpha werewolf, and a psychic human heroine. More variety and subsequently more choices for the reader is always good.
The only trouble I can see for such daring epublishers is if they try to pass their works off as romantic fiction when the romance community still have problems adjusting to what Ellora's Cave started oh, ten years ago? It's been a long time, and some people are still foaming at the mouth about it, heh. But all this is for another blog entry, about whether erotic romance is better off being pigeonholed under an artificial "erotic fiction" genre instead of trying to integrate itself into the romance genre.
But aside from the "eeeuw, incest!" thing, I quite agree with Jane on Dear Author about the dire quality of the offerings of new epublishers. In fact, it isn't just the new epublishers - sometimes the big fish can deliver badly-edited clunkers too, but the new epublishers are at a disadvantage because they don't have a solid track record like the bigger epublishers do. Now that I no longer review Total-e-bound books (it's my decision to stop, but feel free to imagine that I was sacked or something, heh), my reading time is considerably less packed with e-books. I could open the website for submissions, but I won't, heh, not now. The reason for this is simple: I still have a huge backlog that I intend to look at soon, and also I do not want to be swamped with understandably publicity-hungry new authors whose books turn out to be direly in need of either more editing or a complete rewrite. I'll stick to epublishers that I have considered reliably solid when it comes to delivering the goods for now. I'll let someone else give the little minnows a chance... unless this little minnow offers some interesting alternative to the formula, because then you can I bet I'll be there to at least browse through the offerings.