Tom, thanks for starting a new thread. I've written a short overview about
the state of the "booksphere" (webpages/services related to books). Feel
free to correct it / expand it:
http://piratepad.net/5QhLcgbyTt

In my opinion there are several roles that the OL can perform very well:
- linking hub / aggregation: point to online resources which are
specialized in key areas (scans, reviews, transcriptions, annotations, etc)
- bibliographic data server: provide bibliographic data, including
provenance: who created that data, when, and under which license (or only
provide free data).
- book copyright info: who holds the rights and how long for. Search
capabilities to find public domain works.

Then there are roles which, while possible, seem to be already covered
extensively by other webpages and it might be too late to compete with
them, namely:
- reviews
- lists
- recommendation engine (based on reviews)

And finally there is the unexplored field of creative commons publishing.
It might be unrelated to the OL, but I haven't found any website in the
free culture community that caters for:
- self-publishing: connecting writers, proofreaders/editors, and cover
creators that want to collaborate publishing CC works
- CC works storage: something like PG or WS, but for newly created works
- on-demand printing
- donations for the authors (indiegogo and kickstarter take care of
crowdfunding only)
The solutions that exist right now are: Lulu (for-profit), Amazon
CreateSpace (for-profit), unglue.it (crowfunding for releasing copyrighted
works as CC) and BooksLLC (sells digital/printed PD works). While not in
the original plan, maybe you can also give it some thought to this.

Cheers,
David
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