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I do use ratings and reviews to help decide what books to read next. Recommendations from friends takes precedence, but I also look at the ratings and reviews.
Yes, I suppose it's suspicious if a book has a bunch of 5 star reviews and absolutely no 1-4 star reviews. But there's not much that you can do about it.
As for making it easier to find some decent 3-4 star books, I'm not sure what can be done about that either. It might be good to have a "randomize/shuffle" feature so that you can place limits on the quality but not always end up seeing a bunch of bestselling authors. As an independent author myself, I like the idea of reading some books that have a few good ratings, but not many ratings total. These books can be hard to find because they're crowded out by the 5.0 books you describe.
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