I would just have nofollowed all the outbound links instead of shutting the sites down.
By nofollowing links to all your submits, you're preventing your site from linking out to crap. Though that would have pissed off your submitters, since you're no longer accepting submits, it wouldn't have mattered anyway. And who knows, nofollowing your outbounds might have ended up giving you higher search rankings, because all your IBLs turned one-way instead of reciprocal.
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Success is going from failure to failure without a loss of enthusiasm.
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