StenDuring I agree with you. In fact, the lines
Use, copy, distribute, and display materials and modifications on the Internet and on other means of electronic or digital commerce.
Use all trademarks and trade names associated with the materials.
Its all they need for gaining any trial about rights.
But thats just my opinion.
Actually, I will probably be willing to sign away most rights about my own work if either Webnovel or Amazon offer me a contract. I love my novel and my characters but I can still make new ones easily. For a beginner like me, it would be probably much more money that what I can get from an publisher in my country.
I have a friend that is a professional writer and he gets only gets a couple of thousands dollars in advance from his paper publisher and afterwars 4% of the total sale value of every book. For a newbie like me the conditions would be much worse.
So the 200 dollars a month that webnovel guarantees any novel contracted writer in the first four months , would make about 40% of my friend total revenue. Not bad at all. And that is just the first four months...
Of course, I can understand than a famous and prestigious Author with consistance quality skills would see that as a bad deal. But then again, I believe that most famous and prestigious Author would not need a web platform for publishing in the first place.