Indie literature in the ad-supported online realm

CapnCrunch23 writes: Bookgasm reports about an unpublished author eschewing the publishing industry (which seems to be the new black for any kind of artist at the moment) and making his work available in an ad-supported online reader. The ebook, available in several DRM-free file formats, can be purchased directly from the author but really is just a supplement for people that want to use and convert the text in any shape or form.
Is there room for an online literature indie movement? Can a convenient online reading experience gather steam the way other media did before? Could literature move to mobile online-enabled devices like this, making material available to every reader and supporting the artist?