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From experience i've ound that fan translations are a pain to read, especially now they're moved to doing all in Wiki. I prefered the old days when they used to release pdf's of the chapter. Reading manga online is onething, trying to read a novel is a different thing. PDF's could be printed out with minimum of fuss, wiki is a pain to get right for printing.
Also, i don't think there's 'little' demand for light novels, quite the opposite. The problem is that publishers don't actively promote the novels they release, especially when you look at the promotions they do with manga. If you want the fans to buy the novels, we need to know they're out there.
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