Simon P. Lucy wrote:
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That tends to imply that it was an AOL product requirement and not
necessarily a mozilla.org one.
Not imply,  I was clear that this requirement came from Netscape marketing.
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  I can't see any downside to AOL implementing their own feature set but this kind of feature seems a little odd to force on what is intended to be a standards compliant piece of software.
This is Netscape implementing the feature (not AOL), and offering it to mozilla.org.  It does nothing to reduce mozilla's stature as the most standards compliant browser on the web.
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Its also just a little disengenuous to say that AOL features are simply the
result of customer requests, we both know that most features are marketing
driven and that a major marketing reason to have this kind of feature is to
highlight Netscape portal bookmarks.
It would be disingenuous, but *I did not say that*, I said *this feature* came from customer requests.  In fact, only about 95% of our new features come from customer requests, the rest all come from marketing scheming to make us more money.  I talked this over with my marketing wing man this morning, and he admitted that he is not clever enough to come up with all the new features himself, and so relies on user requests.  Its called inbound marketing, and it works.
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That's not to say that there is anything conspiritorial in AOL pushing this feature into the mainstream development rather than keeping it at a product/distributor level but you can hardly blame people for citing it as another example of AOL having what
AOL wants and damning all the rest.
Again, it is Netscape, not AOL, and we are doing what we do nearly all the time: offering our work to mozilla.org.  If they want it in their browser, how is that pushing or damning?  
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The only speed advantage gained in having a little icon depends on
remembering what the little icon means, which requires marketing dollars
spent on making that a recognisable icon. The number of these is actually
going to be relatively small, given the antipathy that mozilla.org has to
hosting advertising within the chrome, why should (even given any of the
reasonable technical objections being answered), mozilla advertise AOL,
Netscape, Amazon and so on? Oh yes, advertising is about choice isn't it.
Well let the choice be whether someone installs Netscape, not whether they
have a mozilla based browser or not.
The benefit is there, and is applied uniformly regardless of which sites you visit.  If few sites have this, then you should remember that only a few sites account for most of the traffic on the web.  In fact, mozilla likes this feature so much that they immediately added a favicon of their own.
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The user has the option of titling any and all bookmarks to make them
understandable, an icon unless it will always perform a useful task, just
takes up space. Personally, I'd remove the curious existing bookmark icon
anyway, it serves no real purpose.
Since you seem reluctant to acknowledge its value in recognizing the object, how about its value as an affordance for drag & drop?
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I think its a misuse of AOL's position to force this feature onto mozilla.org and if the feature remains it seems reasonable that people raise bugs on it as being
undesirable.
Again, no force was used.  You are entitled to file bugs saying that you don't like the feature, but I would consider them to be a frivolous waste of everyone's time. Please report real defects or performance or usability problems instead.
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I've never much held to the view that mozilla is anything to do with
browser wars as such and this is certainly not a feature that's likely to
win any awards or kudos. I don't think anyone much buys that AOL is for
the little guy anymore. It was barely supportable when it was Netscape
saying it.
AOL is, AFAIK, one of the few companies generously supporting development of free, open source browsers for all major platforms.  Despite this, they get endless streams of vitriol from the very people using those browsers.  Does it bother your sensibilities that they also must make a profit?

Peter
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