For starters, check out this great post by Cathy C on how publishers can fail and why AW asks the tough questions:
http://www.absolutewrite.com/forums/showthread.php?t=241409
That's a fantastic post, Bubastes. Thanks for posting the link.
In addition to what Bubastes said, there are exceptions to this rule, where a new publishing company may be started up by someone with a lot of proven experience, and a sterling reputation at another publisher. Although I've actually seen a company like this completely fall apart in record time in one instance unfortunately.
As Bubastes said it's not all authors giving a wide berth, just authors in the know.
That's why AW is great. I'm not sure where else I would get such honest advice.