To expect capital letters at the start of sentences, decent punctuation, and some grasp of paragraph stucture is all fine, and indeed should be demanded. These are basic grammatical rules that anyone trying to write should have a solid grasp of. Obvious spelling errors should also be caught easily, there isn't a decent word processor in the world that doesn't have a spell checker.
But c'mon, to get anal over a misuse of they're their or there on a free story site is just plain silly. It's nice when people always get it right, but slip ups are going to happen. Professional authors make use of profesiional editors for a reason. To expect that level of commitment from people who are writing for nothing in their spare time, on a site that's first goal is to get you horny and second goal is to tell a decent story (let's be frank, that *is* what the vast majority of the writing in the library is about, for better or worse) is almost off the charts funny to me.