Shatzkin speaks again...
This more or less speaks for itself. Just read away. [Via the Brits.]
One thing to note though—while he starts off sounding indie-friendly, he's really not sure how anyone is going to figure out the fiction, poetry, belles lettres publishing business, major or indie. My instinct: start building the communities, the relationships, the trusts now. Do so in a way that is intimate and personal. The communities, the "verticals" are never going to be as neat as non-fiction affinity groups such as lovers of Paris, or knitting, or BDSM, but the human desire of narrative won't diminish, so begin building the infrastructure, starting playing nicer with your readers, and with the people from who you license the stories (aka "authors"), and you might just find suddenly that you are your own vertical, that lovers of Akashic and Melville and Two Dollar and Featherproof and Graywolf and Milkweed are in fact each a community...