Just watched an interview on CNN where the CEO of Craigslist announced they are making changes where their adult ads are going to be manually checked by humans first.
This is the beginning of the end for Craigslist.
Expect them to get sued for every little event that occurs on Craigslist now. Once you break open that 'barrier' you're screwed.
BTW the guy looked like a total amateur (this isn't the founder but the 'professional' CEO they hired recently) - this is what happens when the geeks turn over the controls to professionals - everything goes to '$hit'.
P.S. Just came across this article http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=106014 Like i said legally this strategy fixes the short term PR pain (which could have been ignored if they had some balls, but long term this is the beginning of the end).