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I think it's important to note that NewsCorp isn't blocking Google, they are merely submitting to the blocking policy that Google has had in effect for a long time. Google does not index sites that require registration; it is Google that would be blocking NewsCorp.
Murdock can say he's not interested in the extra search traffic, but he'd be the only one. The New York Times, for example, requires a subscription--but they also host a second version of the page just for search engines. So say someone sends you a link to a NYT article you want to read, but then you get that annoying login page and you can't read it... just do a Google search for the title of the article, and the free version will come up. They wouldn't bother to do that unless they were interested in the traffic Google sends their way.
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