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One of the key benefits of no craigslist API is missing.

By forcing everyone to use the same crappy interface, they prevent power shoppers from snapping up the best deals and diluting the quality of the postings. It's hard to find good stuff on craigslist, but it's equally hard for everyone, so the common folk have a decent shot at it, which keeps them coming back.

I love that craigslist operates this way because it's so antithetical to everything silicon valley stands for, and yet they are phenomenally successful.

Craigslist shopping can go ahead and continue being craigslist shopping; it's unique and different, and has its niche. However, most people I know use craigslist for other things than shopping, where the value of something isn't quite as clear—rooms for rent, personals, job offers and the like. No one's going to be "snapping up" a personal ad with an automated interface, except for the paysite spammers who already do by one hack or another. However, creating an interface that gave these posts more structure both going in and coming out would be great for everyone involved.
Power users can still use power tools; not all such tools are taken down by craigslist, and even if they were, there is still a gap between tool creation and takedown big enough for exploitation.

I have loved and used craigslist for years, but I have little fondness for their locking out third parties. As a seller, I benefit by having more people exposed to my listings. As a buyer, I benefit from more powerful tools.