I know this is an old post but I wanted to give my experience.
I love RCE. Yes, it is a small publisher of mostly lesbian fiction with some gay fiction as well. They aren't into anthologies but have published a few. Nor are they into erotica. There's other publishers for that. The time from submission to answer ranges from 2-6 weeks.
They pay some of the highest in royalties and pay on gross, not net. Payments are always on time.
I had a lot of say in the book's cover. It was quite painless, actually!
Every correspondence with the publisher has always been professional and respectful.
My only small gripe with them is I have to do a lot of my own marketing/promotions. The publisher does the usual routes (announcements, mailings, limited review copies, etc) but that's it. However, they assist after that with lists of reviewers and with tons of advice and hand-holding. The author liaison helped me to design and get promotional materials. My book has been out for 3 yrs and still sells very well!
RCE does well because they are steady. They have no hidden agenda or motives. They take risks on new authors and books that are different. They don't stick to any model or mold in terms of genre. They have authors that have been with them for many years. In this nearly incestuous niche market, reliability is good.
RCE works on the print on demand model via Lightning Source. Recently, they started their own
sales website (mostly due to unreliable online bookstores not paying for books sold). They've also started turning most books into ebooks which are selling well.
The owner lives in east Texas and was in financial trouble after Hurricane Rita (the forgotten hurricane that did as much damage as Katrina) and then later Ike. The company also had major financial problems due to a plagiarist that got taken to court by Penguin (2006). Luckily, Penguin didn't hold RCE responsible but there were still atty. fees. However, the writers and owner of the company stayed together and survived. We're a close group.
I submitted to this publisher because I was bitchin' on a list about how I didn't want to print out and mail my manuscript. I thought it was a horrible waste. The owner of RCE contacted me offlist and said they accept attached files in email. How modern! So off it went and the rest, as they say, is herstory. (grin)