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The problem is that a lot of bots are on autopilot so if it sees a 404 or some sort of a redirect it does an ban but if it just times out do to no DNS then it will usually just pull it.
Even with my LL which is never on autopilot if I see stuff going 404 I'll sometimes hit delete and ban without even looking at it if I'm pressed for time or just not in the mood to investigate whilst no DNS stuff just gets removed.
DirectNic does the no DNS when a domain expires. I know this for sure because Angel forgot to renew her domain recently and I was getting ready to contact our host to see why her domain was down but I first looked to see if her name servers were correct and while looking saw that the domain had expired. The domain was working again within ten minutes of renewing it which I found pretty amazing.
IMO no DNS is the way to go since most do not ban for no DNS so the owner can just add their stuff back in once everything is working again.
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