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everything about this is a terrible idea
So what do we think the likelihood is that after this Kindle Worlds thing starts that Amazon/Alloy will start going after all the Vampire Diaries/PLL/etc. fic that's published on sites other than theirs? Because that wouldn't surprise me. I'm not saying they'd have a legal leg to stand on (I don't think they would), but I would be surprised if they sent C&D letters to people who have their TVD fic up on other sites.
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Yeah it would be one thing if they were saying any fan fic for those shows are welcome, but by establishing restrictions like no pornography or cross-overs, well it does cut out huge chunks of most of the fan fic that people get really interested in reading. I can read the tie-in novels if I want to read something safe and bland, that's generally not what most readers turn to fan fic for