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So, what exactly, do they spend all of that time after registration and before approval, doing? Are they vetting at all?

AND...they could still outlaw/eliminate bots and severely penalize members caught employing them.

Sorry, but this won't happen. Steem Inc. doesnt get involved on what happens with the content of the platform, except to delegate SP to some projects.

All the "regulation" on the content is up to the community. Which in the end will make or break Steemit.

Bots aren't even content...they are anti-content-- sort of like anti-matter. They suck the life out of any forum they touch.