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According to a lot of people here Vanity Publishing is the way to go for self pubbers.
If you need all the editing services etc that a traditional publisher used to provide but without handing over your rights then you need to pay up front for them (i.e. what used to be called Vanity Publishing).
Looks to me like Penguin is doing the sensible thing and offering the same kind of services they would offer a signed author but for an up-front cost.
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