If working under a pseudonym is a "fraud" then a lot of great writers were frauds: Charles Dodgson, Samuel Clemens, Stephen King, Robert Heinlein, Isaac Asimov, a sizeable percentage of the artists who draw your newspaper's comic strips, and 100% of the authors of the Nancy Drew and Hardy Boys books, among others. Many musicians are "frauds" (Farrokh Bulsara, Robert Zimmermann, Reginald Dwight), including most famous rap musicians. Half of Hollywood is a a "fraud": Frances Gumm, Archibald Leach, Margarita Cansino, Marion Morrison, Allen Konigsberg, Carlos Estévez, Maurice Mickelwhite.
(Sorry about the flood of examples. I just can't resist them. Isn't it fun how much less bland the world looks if we just remove the whitewash? But, alas, I can't blame Marion Morrison for deciding that he'd sell more tickets as "John Wayne", because I don't doubt that fact for a minute.)
As we've seen, many pseudonyms were chosen precisely to hide the author's true race or gender from the buying public: George Sand, George Eliot. And there's an analogous practice: the creative use of initials. (Especially common for women trying to break in to SF/F. Isn't that interesting?) Thus, Joanne Rowling publishes as "J.K. Rowling" [2], Carolyn Cherry's 60-odd works of SF are published as "C.J. Cherryh" [3], and Celia Friedman writes as "C.S. Friedman".
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[1] I single out Middle America because it's the place I know -- I was born and raised in Ohio. I'm sure Middle America isn't the only place where this is true.
[2] Of course, this doesn't fool anyone anymore in her case.
[3] According to Wikipedia, the extra "h" is there because "Cherry" sounded too much like a romance novelist's name.
Yeah, that one would be a little harder to explain away. ;)
Creating a single location for a single product may be a new model of retail but selling a product with little value to a naive market is not.
EDIT: I just realized it's not a new model of retail at all. One person selling their wares predates the concept of retail stores and it's still alive today on streets and in markets.
Let us not forget Joe Ades: http://www.youtube.com/watch?v=2ia7TF2yVQU
All your grocery store ever does is extract money from people who aren't smart enough to find the right produce through their local farmer.
This is a new model of retail. Instead of creating a central box into which a hundred different products can be dumped, for a thousand different people, this site creates a single location for a single product, which a huge number of searchers will find. The fact that there is a Parrot Book, and that it's easy to find, is good for humanity. Not sure if the rewards are commensurate to the goodness, but if you average this in with a few hundred other sites using the same scheme with less success, you get a saner picture.