I don't know if anyone else has mentioned this point yet as I haven't read through all 18 pages (so far) on this topic but Mr. Coker needs to brush up on his book knowledge. The proper title for the book he uses as an example is "Animal Farm" not '1984." A small point perhaps but if someone can get that wrong how can you be sure that other things won't be done incorrectly? I also have to wonder, why now? I mean Smashwords has been online as a business since February of 2008, and Pay Pal just now has a problem with books sold on the site?
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From an imagination perspective, erotica is little different from a literary novel that puts us inside the mind of farm animals (1984)
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