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DMOZ is still great because of PR benefits.
I think a purely manual search engine that uses many differing sources of scoring would do well. What it needs to do is do well enough to gain credibility and a mass base and then it can do cybernetics (mixing human and automated inputs).
It can definitely be done if someone puts in the time, money, and brains to do it. It definitely won't be done in one day and it will probably take a long long time for whoever builds it to get their money back.
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