Can they really sell books to the mystery, romance, sci-fi, thriller, self-help, cookbook AND tabletop gaming communities? The more successful epubs do better specializing in one genre. This looks like a grab for anything and everything. Except erotica. Which is strange since that's one genre that's been seeing a lot of growth.
Offering editing, design, typesetting for a fee while also acting like a publisher is also a problem. There's a conflict of interest which makes me think they will be more interested in selling editing or cover design packages than properly marketing Insomnia authors.
Insomnia just opened their doors, yet has no books for sale. That's like a shoe store having a grand opening with no shoes in stock.