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it was a foolish move imo. the more people who have a book, the more who will read it. in the short run, that may not make sales, but as sequels come out, having the free book available on people's harddrives will mean more sales as they get around to reading it. now they can't get around to reading it as most of the people i know who read don't read in their browser.
i have a queue i work through, but my eyes can't take reading a full book on my monitor. i've bought a LOT of sequels to free ebooks, and sometimes bought the original as well. i've only once bought an ebook that was "free" but only available to read online (coraline), and i was already a big fan of the author.
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