I have a ‘membership’ with Smashwords – why? I don’t know. I never use them anymore and barely ever did. The link below is to an article which really sums up my view of Smashwords as it covers the partnership between Overdrive and Smashwords.
For more visit:
http://goodereader.com/blog/digital-library-news/overdrive-inundates-libraries-with-200000-horrendous-indie-ebooks
At the BookShelf 
Not sure I can agree with this 100%. Sure there are less than good books on smashwords, along with bad art work, and dare I say formatting but it is a self publishing service. Your going to get that with a self publishing service. Smashwords has given Indie authors the power to write, fail, or succeed without going through a traditional publishing source. I think most people know what they might get when buying from Smashwords. You might say the same with Amazons kindle, they dont vet authors work there either. I will agree that seeing a ton of Indie works at the local library at random might not be a good thing.