I personally have no qualms with the use of 'literary' (been through extensive discussions for years, about literary fanfiction in The Professionals, and that's how Pros Lit came to be, and thus named ;) - it can scare some away or intimidate others, but it shouldn't. Can't please everyone.

I'd rather have a 50/50 percentage of 'already published' vs. 'unpublished', but it's not a requirement for enjoying the whole process and/or working for it.