About the restriction on e-publishing, I think I see what they were trying to get at, and their mistake was that vanity publishing is just a subset of what they're trying to prohibit. I think that what they want to prohibit is anything that's published in a manner where the publisher takes on very little risk when publishing the work. If a book is offered primarily from a website, then it can either be produced in a print-on-demand method (so if there ends up being no demand then there is little sunk cost), or it can be sent as data over the internet, which also has little sunk cost. If selecting a title for publishing doesn't mean that the publisher has to eat a large sunk cost regardless of how many books get sold, then the publisher has less reason to turn away sub-par novels.