Interesting Diane, but not altogether surprising. I seem to recall some earlier post about an article on the POD plans of HC.
Still, as Alexander agrees, the site is useful for helpful 'peer review' and some fun, but HC seem not to be taking the project as seriously as the 'writers most likely to become published' would wish. (I am NOT one.)
POD may, or may not, represent the future. I suspect it will develop and become more attractive to the great unwashed public, taking a larger market share,so we shouldn't be too surprised that HC want a large slice of that action. 
Ah, but MHM, the manner in which HC has moved there is what's insidious. POD is going to be big in the future, but only if there is still a measure of quality control.
R