Hi, Peter! *waves*
I agree with HE, in that I think the knee-jerk reaction isn't necessarily a productive response, given the challenges the industry is facing. Not to defend Harlequin, mind you; they're a corporation first (meaning maximize profit above all else). But while the publishing landscape has endured through lots of upheaval over the decades and managed to keep much of its silliness intact, I'm not sure it can do so indefinitely when facing the digital world that's permeating all facets of our lives.
Yes, there are already too many books being published even by traditional means to be supported by the not-growing-in-size novel reading public. So more self-pub stuff doesn't help that situation. But RWA, like SFWA, in this instance at least seems more focused on maintaining the status of the have's (the authors who have made it into the club) than being a force to encourage writers of all stripes to help move up the ranks and join the club. That's certainly their prerogative as an organization, but given Harlequin's status as a romance publisher I can't help feeling that this is a move without a positive ending except to lessen RWA's influence. I rather doubt Harlequin is going to say, "Oops, sorry, okay we'll shut it down," unless it makes no money for them. If it does make money, then RWA can complain all they want and it won't make a hill o' beans worth of difference.
Personally I think RWA and SFWA should step beyond their self-imposed borders, and find a way to deal with self publishing instead of hoping it will go away. With this digital environment, it's not going away. And yes, much if not most of what comes out of it may not be very good. But if it's part of the new landscape, perhaps these organizations should recognize it for what it is, and offer a stepping-stone path that includes it. Perhaps keep it separate from the mainstream, regular publishing stuff, but offer a hand out to those self-pub authors who are serious enough about what they're doing to want to be a part of the organization, and offer knowledge and assistance from the "have" authors so that those in this new lower tier can have a path to move up and aspire to. If they continue to treat self pub authors like dirt and worrying that it will impact their own traditional status, it may just end up isolating them.