The Romance sector in the US also has the problem you describe in Australian publishing. The authors also review, and are therefore reluctant to give bad reviews. There does seem to be a strong element in the internal sub-culture (at least as I have seen it on-line) that everyone must be nice about everyone else's writing regardless of how little it is merited. It is my opinion that this contributes both to the generally rather low quality of writing in this genre (which I regret) and to such concomitant intellectual perversions as the belief that research is an optional extra when writing a historical romance (which I despise).

I pay attention to technical criticism, especially from people whose technique I think is better than my own. I don't write fic for money, but I don't want it to be a complete waste of my time either, so I want to get better at it, as I would in respect of any other hobby. But I do realise that the desire for mastery is not the only reason to practice any skill.