What's your personal take on the commercial vs. literary question? Some people seem to think the distinction is hard and fast, although they don't necessarily agree on where to draw the line; others see some gray area between the two.
Everyone I know recognizes the gray area between the two, though different names for it are used. The two most common I've heard are "upmarket" or "smart" fiction or nonfiction. I don't really like the "smart" classification, so I use "upmarket."