Just as a head up on this topic, they did post some updated news at http://www.comicsmonkey.com/blog/ . Apparently they will be giving incentives beyond 35% based on volume.
While I agree that they probably will have a giant catalog of sub-par titles, I don't see that they're under any obligation to try to solicit sales on their entire catalog. They're basically just making an Indy Planet catalog for retailers, with an altered payment structure. Creators are still going to need to go out and market their own books.