I've been following this discussion with interest. I note members' concerns, but I would like to say a word on Richard's behalf.
First of all, I have run similar multi-contributor projects like this myself, and I can testify that it is a nightmare if at the 11th hour (or later) one contributor decides to withdraw his or her permission to publish. For that reason, I don't think it's unreasonable that contributors whose work has been accepted (and those people only) should be asked to relinquish their copyright in these specific circumstances.
Also, let's remember that each contribution will be a maximum of just 500 words. Typically, that would represent maybe two or three hours' work. I don't really think that giving up your copyright in these circumstances is such a big issue. If I was inclined to contribute, I would see this as a bit of fun, a chance to exercise my writing skills, and an opportunity to promote myself and my freelance writing services. Obviously, if the book is published, there is the chance of making some money from it too, but I'd have to say I think that's long odds against.
Having said all that, I do think it's unfortunate that the website still says that anyone contributing work (even if it is not accepted) will relinquish their copyright to it. Richard has said on this thread that this stipulation only applies to people whose work is accepted for the book, and I think the 'Policies' statement on the site should be changed to reflect that. It might not hurt, also, for there to be a little more explanation on the site as to why it is necessary for contributors to give up their copyright. But overall, I don't believe that Richard deserves to be vilified for setting up this project.
Don't get me wrong, I do believe authors should defend their rights, but I don't think that this is really the issue here. The usual caveats apply - if you don't like the terms of the project, don't apply for it. If you do, go into it with your eyes open, and realise that it is unlikely to be a money-making proposition, but might have other benefits for you.
Just my opinion, of course!
Nick