Claire Wolfe is a good example of a successful self publisher. I bought a copy of The Freedom Outlaw's Handbook, myself, and have vastly enjoyed it, and recommended it to others. If your Muse moves you to write about politics, theology, experimental science, avant-garde poetry, philosophy, or erotica, some form of self publishing may be the only option. Mainstream publishers, and even the smaller art houses, are looking for stuff that has the potential to sell thousands and thousands of copies to average readers, and Libertarian screeds, even good ones like Claire's, just don't have the perceived potential to get shelf space at Wal-Mart or the major chain stores. In any case, Pat's FAQ is aimed more toward new fiction writers who want to see their first novel in print, to keep them from getting burned by all the con artists in the vanity publishing business. Lulu is basically a typesetting and printing service, I believe, and they're upfront about it, not conning people into thinking they've sold their book to a commercial publisher.
*Disclaimer- The majority of the stuff I have written that has seen print is technical writing and software manuals done as work-for-hire for my employer, copyrighted by them, and not carrying my name anywhere in the credits. I've had a few pieces of short fiction published in some zines (none of it fanfic), and actually got paid cash money for a couple of them ($25 and $50, whoopee!). I have no plans whatsoever to write The Great American Novel.