Further to my post last week about Literary Fiction versus Genre Fiction I came across an excellent post over at Jennie Coughlin, in which she suggests the term "serious fiction" is useful and comments:
Literary often involves playing with language in ways that are artistically pleasing, but perhaps veer too far into experimental for most people. And genre has taken on a connotation that is the opposite of serious fiction. More and more there are books out there that don’t fall into either category. If more people adopt the “serious fiction” category, maybe we can start to build a new genre.
I'd urge you to read the full post - very interesting stuff.