James Frey exploiting desperate writers

I've been finding it disturbing to read about James Frey exploiting desperate writers–and that he's specifically targeting YA writers. There's been a LOT of chatter about it on Twitter from book industry professionals and writers, but I haven't seen much discussion elsewhere. Have you read about the issue, or seen the article? I think there are likely many of them, now, but a few good ones to start with are:

A YA Reader and Writer's Perspective on James Frey's Writing Assembly Line

and

Read the Brutal Contract from James Frey's Fiction Factory on NYMag.

I think this quote from Conrad Rippy, a publishing attorneya sums up what Frey is doing:

"It's an agreement [Frey's contract for writers] that says, 'You're going to write for me. I'm going to own it. I may or may not give you credit. If there is more than one book in the series, you are on the hook to write those too, for the exact same terms, but I don't have to use you. In exchange for this, I'm going to pay you 40 percent of some amount you can't verify—there's no audit provision—and after the deduction of a whole bunch of expenses." He described it as a Hollywood-style work-for-hire contract grafted onto the publishing industry—"although Hollywood writers in a work-for-hire contract are usually paid more than $250."

Scary, eh?