As far as I can see, the concerns addressed in this thread are grounded in fact. I.e., no one has made wild claims. No one has suggested that Lillibridge abuses its authors.
At issue are policies that may, nonetheless, be bad for authors. For example, just a few comments back, (#70 at this point), Victoria Strauss asserted that Lillibridge’s contract contained unreasonable clauses. (I think “unreasonable” is a vast understatement; “onerous” is more apt.)
Lillibridge’s comment (#75 at this point), confirms that their contract contains those clauses and makes no apologies for the inclusion of author-unfriendly terms. I.e., those terms are a fact.
Even if Lillibridge does a decent job of distribution, even if they pay royalties on time, the author is still stuck with a contract that ties up rights to the Work for decades, and which prevents him/her from publishing anything based in the same characters for five years. Five years. Yikes!
Those terms may not seem like a big deal* if all going well, but they make for a nightmare if something goes wrong.
(*Actually the no competing clause is huge deal to me, as I write many stories in the same “universe.” Frankly, I find the clause stupid and self-defeating, since a sale of a similar story could drive sales of related work.)