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I don't think sponsors should stop offering hardcore content but I think webmasters should definitely use hardcore content sparingly in free areas and definitely not build complete free sites around it. A "members area" can contain larger amounts of it to upsell sponsors to surfers who have already been filtered as having a credit card.
I just hope that if there is a 2nd Bush term and they roll out the long rumored war on the internet that they put out the policies before they drag out the handcuffs, citing existing laws.
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