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As someone who's read the infamous slush pile (and seen excerpts from PublishAmerica books, and worked at a POD publishing service) I firmly believe in the importance of publishers as both gatekeepers and facilitators.
Truth is, there really is a ton of unreadable dreck out there and you need someone to go through it. I prefer books that have been vetted by commercial publishers because that does usually mean the book meets a minimum standard of spelling and grammar. It may still be dreck, but at least I know it's written in readable English.
Publishers also serve as facilitators, getting bookstore placement and promotion in the trade press.
I think they're vital to the health of the industry.
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