AFAIK, they are focusing on romance and stories with strong romantic elements. They used to accept other genres, but I'm pretty sure they aren't any longer (unless they have those pesky strong romantic elements.)
But if you have something and you aren't sure if it'll fit, take a look at their submission guidelines.
Yes, they release all books as ebooks. I think only books that are 65k+ go to print. They have distribution and their paperbacks are stocked in Barnes & Noble (and perhaps Borders - but I'm not in Borders that often so I can't say for certain.) They also have an excellent reputation, and are well regarded.