GalleyCat had an item on a new venture by some well known writers (Ursula LeGuin famous enough for you?). It's called BookView Cafe and at first glance it just looks like a blog. It's more, however. The FAQ calls it a writers' cooperative with lots of short stories, novels, novellas and novelettes, and even a screenplay (LeGuin's contribution) by about 20 or so published writers. You have to register but then you can read the stories for free—at least right now. The FAQ also says some of the writers plan to sell "premium content" via the site.
So, just another case of creative people looking for new way to use the web.