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Great points rishi. Facebook can teach us all a lesson in social networking and how to improve our own web 2.0 products.
Beware, a strategy like this might aswell backlash. Maybe it would not be as easy to get away with if you're not the 4th largest site in the world.
Personally, I find these emails annoying. I don't doubt that they work in general, though.
wow! keep with the good work, captain obvious. sure they do!!! that´s why they grew that big! if a regular site sends you that crap, it is spam... if your pals send it, you cannot just say no.