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My site does show up #1 for good keyword that I have always had a #1 ranking for. For this particular phrase that I am #1 for, the two words are immediately adjacent to each other in my description. But I tried another search using two words that are not adjacent, yet are present and close in my description, and my site didn't come up in the MSN web directory results at all. It used to come up under this second phrase, albeit it was buried down a bit around #25 or #30.
Strange.
As I understand the L$ system, each site has a series of scores in their database for a range of keywords that a L$ editor deemed your site to be relevant to when your site was initially reviewed.
MSN has always presented the L$ results ordered differently than L$ did. MSN uses the data from the L$ database and they put a different spin on the results somehow.
In implementing this new system, only the "more relevant" results to the search are showing up on MSN now (i.e. higher invisible keyword score from L$ database). I am guessing that for sites with keyword scores below a certain threshold, MSN just doesn't present those results.
All sites now have fewer keywords they are deemed relevant to. This results in fewer L$ "web directory sites" showing up in the MSN results, and INK results are now higher up for all searches.