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I don't think that google is really interested in non-free and non-bestseller books. I think they put the bestsellers in there so it does not like sound like a project gutenberg ripoff. 3+ million free books and nyt bestsellers does sound appealing. Also the store is nicely tied into the android market and opens books directly from the market even. No surprise there. Plus having clouds and sync between all your devices does sound suspiciously like kindle. It appears to be more targeted towards non-eink android devices.
Sorry to hear that it is a pain for less than perfect established writers trying to publish though. Google has the potential money and technology wise to scare Amazon - and that is where they are headed, IMHO.
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