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It's not real clear....but it sounds like they still have to play by the same rules, it seems like it's more of a marketing gimmick (for people who don't realize they can control their appearance on serps with metas)
"Customized page information gives partners control of their pages' appearance on AltaVista search result pages."
True. It would really mess up their already flawed results.
Like you stated, and seeing that the site requires 500 or more pages to be submitted, it is probably just an easier system to manage mass submissions. Similar to how Goto requires spreadsheet files for large submission.
So instead of having to worry about the true content of your pages, you just designate on the XML feed what you want the information to be listed under.
It would be good for someone like mp3.com and amazon.com. They could pay to have all their products listed under the appropriate searches without having to worry about going into each product page and customizing the title, desc, and keywords.
Why not? Inktomi does that exact same thing with their pay for spidering program except you have to have over 1,000 pages.
"A pay-for-performance program designed for business partners with more than 1,000 URLs, Index Connect offers an opportunity to lower the up-front indexing fees of most paid-inclusion programs."
"Pay only for the high-quality traffic that is delivered"
[inktomi.com...]