Yep. The community has a self-moderation system to do stability testing and maturity rating, but otherwise any quality of game may be allowed in.
It brings an incongruous look to the XBox UI when one goes to the indie games section and the promotional art changes from lavish illustrations to crude MSPaint-esque icons.
Is that true -- that there's no editorial control of indie games on the Xbox marketplace (except by the "community")? Edit: impressive!