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In my mind, I think a lot of search engines might still discriminate against extensions like that in providing them with good search results listings...
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But, how many search engines still matter these days? If the top 4-5 don't make such discriminations, all's fine. Personally, I don't think that penalizing sites based on the TLD, owner's location etc would make sense for a search engine. Excellent content can come from anywhere.