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I think its a great idea and worth the experiment. With the same caveat that always applies, make sure your book is well edited and of high quality. The chance make a mis-step and ruin your 'rep' is great here. Now that I get the 'Debbie Downer' part of out of the way, I can see some good opportunity here to build up a rep as a 'real author'. I'm kind of suprised Hallmark hasn't picked this up to bundle their romance books with.

For Smashwords this a win, as its bringing traffic (and introducing) people who've never otherwise would have heard of them. To do that normally you'd have to launch a major televsion and print advertising buy (millions of dollars). The cost of providing a 'free' download to a first time customer is a pittance compared to that.
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