Thanks for the feedback.
This project came up after we received a package called RSS Equalizer from a client who wants us to install it. It came with an eBook (RSS Action Guide) with a proposed hack, that look like the ones I mention in the original posting. I quote:
"The problem with this is that too many outbound links will cause PageRank leak, which will lower your rankings in Google. Of course, you can always disable links, but thats not very ethical or fair to site owners who provide you with all the links.... The solution to this is to use..." .
We plan to go a little farther than RSS Equalizer, offering several options for delinking (delinquing?), and sell the script with the proper disclaimer.
About Terms and Conditions for the newsfeeds, I am sure that there will appear in the near future, but currently I havenīt seen any in regular RSS feeds. The London BBC has a strict T&C, but they are the BBC...
Many webmasters will start inserting the Google-endorsed Nofollow attribute by hand, and our tool will automate the process. Other uses, like using intermediate ad pages in the borrowing site, before letting the visitor go away, would be dubious or unethical.
I guess some people will use the script for fair using/incorporating/borrowing/stealing content for their sites. They would be responsible for any copyright infringement.
My guess is that our tool will not be illegal per-se. Thus, I see no objection in launching it commercially.
I am listening to any warnings before going ahead...