I just finished reading Andrea Grassi's post on literary writers and selling out over at Little Red Umbrella. Grassi makes the well-worn point that if literary writers want to attract more readers they should focus more on storytelling and not run away from genres. Of course, I agree with her on this.
She also points out how literary minded authors have more access to grants and seem to rely on them to finish their work. Oh, to be a writer who could rely on a grant...but I digress. Anyway, I posted a comment with my thoughts over there if anyone cares to read it.