The publishing houses are certainly not beyond reproach as judges of worthy literature. Yet, despite their warts, the publishing industry does serve a valuable role as an initial arbiter of literary quality (however flawed it may be).
Rather than post one of her already completed works, Geragotelis opted to write a brand new story that appealed to what her target audience was currently reading: paranormal dramas with young woman protagonists.
Perhaps what "terrifies" publishers about Hocking is what she represents: a future in publishing in which writers have more agency over their work; and agents and editors no longer stand as gatekeepers between books and their audiences.
These are the people who helped move indie films from the art house to the Oscars. These are people who take pride in being the ones to discover--and pass along--the newest indie film, garage band and self-published book.