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Remember that for many, many sites, they do quite well DESPITE some spamming - not BECAUSE of it. in such cases, I doubt MS would refer them to a Manual Tinkering Team.
Then their network expands out to 100's and 100's of fake directories on everything from hosting to real estate. They are amazing, really. But I like to report them all the time just to see what will happen, so far nothing, except for Yahoo.
Guess I should get a life...
The fact that they exist is annoying - they give quality directories a bad name. But most of them get very little trade of any sort, and I strongly suspect their links are heavily discounted, so I tend to treat the with the contempt they deserve.
I think it's an abuse that's declining - the peak was probably 2005, but more are dying than spreading, these days.