Right. Nothing on the main page or Submit page mentions free books; the guidelines are hidden in the “about” link in the footer (http://hackershelf.com/about.html). Because of that, I’ve seen a certain poor misguided user submit 30 non-free books, complete with cover art, that are going to have to be deleted eventually. All we can do for now is flag non-free books until the site owner deletes them or creates a separate section of the site for them.
It's not. It's pretty explicitly stated in the guidelines what sorts of books are allowed. I have a day job, I don't sit and watch submissions all day. I manually review them every evening to cull non-free books. All commercial titles you'll find on the site were added today. I personally don't see any ambiguity in the word "free". If you find anything displeasing, you can make my work easier by flagging it. Thanks.
Consider adding a "New" section, or sorting the New books to the end of the list, so Knights of New can flag bad submissions, while casual browsers can avoid the bad experience.
At the submissions levels you (usually) get, you could even review all submissions before they are published.