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I suspect it's a case of people bringing their RL ethics into a MUD environment. People expect a right to privacy in the real world, just like they expect the right to freedom of speech, etc.
In a MUD, however, your 'rights' are usually pretty clearly laid out. Most MUDs have a restriction on what you can or can't say on channels, be it no OOC talk, or just the usual no flaming/personal attacks/advertising. The only people who cry that this is a restriction of their rights, at least in my experience, are the flamers/harrassers/spam advertisers.
So, yeah. If people don't get upset about that, why get upset about snooping?
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