I have a friend that is a published SF author and he spends a couple of hours each week sending out copyright takedown emails (and managing responses, etc). Usually it's someone who likes his work and just wants to share it, but several times he has caught exact copy/paste editions being put out there under someone else's name.

They have a reason to be paranoid about ownership.

Blatant promotion link: http://www.amazon.com/K.-M.-Tolan/e/B005EXKWGU/

Slightly irrelevant, but why Taiwanese? Since when has Taiwan been considered non-respecting of copyright and patents? I'm sure it's just an off-hand comment, but it still seems oddly specific since there are fewer Taiwanese speakers than the entire population of California.

Not really. Copyright in the US at least permits a base-level of protection, and should domestic or international plagarism occur, then having the original file(s) and correspondence would be excellent evidence. 'Copying ideas' like gets brought up often in lawsuits against movies are essentially non-starter cases. Ideas can't be copyrighted, simply the telling of the story.

In my circle of people, self-publishing is simply still a 'vanity' project and commercially not viable.

Being part of a reviewed, curated, and edited publication benefits the writer and reading public much in the same way that certain record labels (ex: Hospital) release materials that fit within their mold of quality.

The author of The Martian started out publishing it as a serial on his own website. Seemed to work out pretty well.

That might be the better argument. Sure, you might be skipping out on the handful of $'s that that small Taiwanese market might bring you, but would they have bought your published book anyway?

However, when Hollywood needs to film rights, they'll have to come to you and buy the license according to your terms.

and not to forget: "fifty shades of gray started" out as a sexy internet fanfiction.

Easily one of the most lucrative IP infringement cases in recent memory as well, but people walked away happy with pockets full of money so no hard feelings.