My entirely subjective and personal response to IndieReader :
1) "... we will promote, market and sell your book on the premier, Indies-only website."
2) "The fact is, self-published authors know it's a rough world out there. They get no respect from publishers and little attention from consumers."
Oh, the poor little me mantra. So if consumers pay no attention, how is putting all the books in one place going to change that?
3) "I think that it's stupid and unfair to brand an entire category of books as crap, just because the "traditional" publishing industry doesn't embrace it."
I think that is a straw man argument.
4) "IndieReader is part of a vast sea change in publishing."
Somebody drank the Koolaid... and has a large punch bowl.
5) "Why will the world welcome IndieReader.com? People are naturally drawn to what’s unique and genuine, be it Indie movies, Indie music...or Indie books."
The 'if you build it, they will come' argument. The equal and opposite truism being 'on the internet no-one can hear you scream'.
6) "The fee for inclusion is $149 per year, but if you sign up prior to IR's going live (in early June) we are offering a discounted rate of $99 per year."
Okay, so 25% off the top and a flat fee that would cause most "indie" books to run at a loss=sudden and complete loss of interest.
7) "However, good books must be in good company, and so we reserve the right to exclude books that don’t meet certain standards of quality, both in terms of basic spelling and grammatical errors and content."
Heh, isn't this the key irony? In order to raise quality standards you have to do the very thing "traditional" publishing is denigrated for doing? (i.e. be selective in one's embraces, see 3 above).