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My suspicion is that the crap level for self-published is much higher that 90% simply because there are virtually no barriers. If you think your unedited nano novel is worth putting out there you can with very little effort and people do.
But for the sake of argument let's say that the crap rates are the same for trad- and self-pubbed books. 90% of the gazillion indies is a lot more in absolute terms. You can wade through a lot more crap indies before finding pearls simply because there are a lot more there.
As for the cream rising by word of mouth etc. Well yes but a) I find that there are almost as many crap book-review bloggers as crap books and b) the ones that do seem to generate word of mouth that reaches my ears are almost all traditionally published name authors - something to do with marketing perhaps?
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