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Fully agree. As I stated in another thread, a good looking UI doesn't mean it functions well.

I'm not sure why they took this approach - perhaps thinking something was wrong with the old Digg design? It was the latest Digg design that had the problem, its precursor was fine and working well. They clearly don't have someone who understands the nuances of functional design - or if they do they aren't being listened to or valued properly.

I assume it's an attempt to differentiate themselves from other news aggregators like Reddit and MetaFilter.
Because their model is working so terribly... Differentiation because you don't know any better isn't good.