Sorry, book sellers group it like this since, how long? Since Harry Potter?
Allen County Public Library (Fort Wayne, Indiana) had The Lord of the Rings in its "Science Fiction and Fantasy" section in late 1993. This was three and a half years before first publication of Harry Potter and the Philosopher's Stone.
I don't know, I assume the 'free market' prevents him from getting a deal with any publisher at all, if he does not agree to slavery terms?
An author could always be his own publisher, hiring an editor and having books printed through a contract printer. Or he could sign a time-limited contract with a publisher and have copyrights revert to him after a decade. Or he could license the rights to a publisher throughout the industrialized Anglosphere (US, CA, GB, IE, AU, NZ, ZA) but retain rights in the rest of the world, as the Authors Guild suggests. Or an author could sign with Baen, a publisher that not only specializes in speculative fiction but also "gets it" with respect to e-books. Baen offers e-books with no digital restrictions management, releases many of its authors' older works as free samples in the Baen Free Library, and even offers paid early access to the public.