A literature portal wouldn't be a bad idea, to be honest, as long as it is managed well. At times, I've felt like reading some short fun stories and thought "I wish NG had a better system than just the writers forum for this".
The biggest challenge would be an efficient filtering system. If submissions containing terrible grammar and spelling flood the literature portal, it will crumble very quickly. Measures must be taken to ensure quality presentation to uphold standards.
Solution 1: Spellcheck
In the submission page, a spellcheck (and possible gramar check) must be put in place to bring spell errors to the attention of the authors. Of course, not all words used, such as names, will pass the spellchecker test. The onus is on the author to use Newground's spellchecker to his/her advantage. Should authors refuse to submit proper grammar and spelling, literature mods will be required to delete certain submissions, and let the author's know why.
Solution 2: NGE (Newgrounds Editors)
The NGE will proof-read and edit every submission that comes through before it is released in the portal. These editors will fix all grammatical and spelling errors, and if required, contact the original author regarding other matters. How the system will work:
Step 1) Author submits his literature.
Step 2) An NGE will click a button which nominates him as the editor of that submission (NGE may only assign themselves to a maximum of 3 projects at a time). NGE may also de-assing themselves from the submission, leaving room for another editor to take his/her place.
Step 3) The NGE submits the edited version. This is passed onto a mod, along with the original un-edited version.
Step 4) The moderator will review and compare the two versions. If need be, the moderator will correct anything the NGE has missed. If the NGE has missed too many mistakes, the moderator can reject it, and the NGE will have to touch it up again.
Step 5) Once the moderator is happy with the work of literature, he will then send it through as approved and ready for release. The submission will not be released in the portal yet.
Step 6) A notification is sent to the original author, where the author can review the edited version. If the author is satisfied with it, he/she can release it in the portal. If the author is not happy with it, he/she must contact the editor.
If an original submission contains excessive errors, the NGE can mark it as unworthy, and give a reason why. If five members of the NGE mark a submission as unworthy, the author will be notified with the reasons given.
A system must be devised to reward the NGE, as they will need to put a fair amount of time and effort to uphold a high standard and good reputation of the Newgrounds Literature Portal.
A great way for the literature portal to thrive would be if other media creators were able to use the writings from the literature portal, with appropriate credit, of coure.
Perhaps a game developer would like to base their game on a Newgrounds story, and perhaps even pay the writer to change it up to suit the game. Perhaps a singer may be inspired by the lyrics he found on Newgrounds, and would to like to release a song containing those lyrics.
Obviously, the literature portal would have to be separated into categories:
And then, of course, respective genres (fantasy, crime, horror etc).
Just some things to think about.