My guess is that they didn't anticipate just how sleazy people could be. As was pointed out in another thread, PubIt has already been inundated with people uploading public domain books to make a quick buck, so every search brings up a flood of classic novels that don't belong in those lists. The rest of the uploads seem to be poorly written erotica written by the same 8th graders who post on FFN, or ripoff vampire sagas that sound a lot like the plots to Twilight and Anne Rice novels.
The key to B&N's success—and therefore ours—in my opinion, hinges almost entirely upon whether they can and will come up with a good search engine that lets people filter out the crap with multiple tag filters. A potential buyer should be able to come to the site not knowing exactly which book they want, but able to find the type of book they're looking for in a few clicks. Supposing I want a book of non-speculative dark fiction with gay romance but no graphic sex in it? Or even just a short story that takes place during the holocaust? Searching for those by keywords brings up false hits and frustrates the paying customer. Waaaah!
The question is whether anyone in authority at B&N ever patrols these boards. I guess I'd better figure out a politically correct way to say their current search engine totally sux, and send them an email. Grrrrrrr!