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This is a dmoz article aimed at what editors should think about so maybe you would find it helpful:
[dmoz.org...]
I was checking if my site is indexed already. I searched on a part of the URL. The results were all from this site that uses the same words in their URL as I do.
All their pages are similar and all are listed in in:
regional/North America/....state.../Travel and Tourism
The only difference is in the state.
(I hope that I am not too specific for this forum.)
I was wondering if this is ok. And if it is ok, should I do the same?
The final secion on the DMOZ Newsletter reference gives you the answer as to how editors are counseled to approach the problem.
"When you have a question as to whether or not to deeplink, it might be helpful to pinpoint what kind of deeplink it is by re-reading the above synopsis of types. Then ask yourself these now familiar questions: "Does adding this deeplink enhance the category by adding quality and unique content not found on other sites in the category? Does it provide usefulness to the searcher?" If the answer is yes, and if it fits the other criteria outlined in the guidelines, then add it. "
From experience, I can tell you that different editors will reach different conclusions as to whether to deeplink at State level.
A junior editor has an easier time if they reject deeplinks, that way a senior editor cannot question their judgement.
If you genuinely have a good site with lots of unique state level information, then you can count on maybe half the states listing you! It is not cut and dried.
After all you are suggesting that your competitor should not be listed at state level because of lack of real content, but various editors did!