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To return to the original question: "Should Demonoid Stay Down".
I notice that a number of posters have said what a useful site it was for downloading legitimate content - OpenOffice, etc. Presumably one solution would be to bring it back up, and for the site owners to ensure that it is only used to distribute legitimate material, and that users of the system are made aware that posting illegal material on it is not permitted. I understand that a number of other legitimate P2P systems operate in this way.
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