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What you must realise Kovid is that over 50% of the current gutenberg.org titles have come from the various Distributed Proofreaders channels, where they use there own software to allow people to proof read - no technical knowledge required.
Although I don't know the exact numbers, I don't believe too many new PG titles have come from outside the DP websites within the last few years. DP have had various discussions on using TEI as a master, but had said that it was not good enough to record the books properly...like .TXT is!
Saying that, they have produced quite a few TEI versions over the last couple of years, I'm just not sure whether they are from individuals or their own system.
@cerement
I think the idea was to use pg2tei to convert the back catalogue. I presume the DTD was for newer books.
I don't know if he ever had plans for this to be used as a master, or whether is was just another format to add to the archives, like they now have with EPUB and MOBI.
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