@Raptorman You see I kinda agree with you, I suggested the possibility for there to be an in IC Comic House called Night Hound comics. That would publish Heroes as they gained popularity.
And while I don't see the problem with there being Spider Man Comics, I don't think DC or Marvel should be as gigantic as they are in our Universe. We already have Superheroes darting about so they become less fiction and more fact, making them less of an escape from our daily lives. Now a Fantastical Spider Man set in a world of might and magic could be something the average citizens goes for. Placing Superheroes in straight up fantasy settings or high science fiction. That I could see as a more believable approach.
I think Marvel and DC would absolutely exist; they would just be far less popular since they're selling a "fake" version of something people can get every day. I also don't think in-universe comics of this world's contemporary heroes would be terribly popular, either, since they're guilty of the same thing. If I'm an Icon fanboy, maybe I want to read Icon comics, but if I'm just an average Joe who loves Icon then I only care about his real adventures. Comics based on real world heroes probably feel trite and cash-grabby to most people.
EDIT: However, comics of Lady Liberty's WWII adventures? Those I could see being popular, since so much time has passed and those adventures have ascended to legend status.
Well I think you both are on the right track and that makes sense. :)