Hi Mary,
To your question on losing rank.
This is possible if you are using someone elses adcopy. If you are the author you stand a better chance at not being punished by the search engines.
Folding up the tent. You are right on this when respect is lost. The other side to this is when a person has gained a following and those followers see it and think it's ok not knowing any better or copping out saying everyone else is doing it. I call this "running through Stop Signs just became legal because everyone's doing it". Many people will just see how far they can get away with it before something is done.
If you can moderate and delete the Spam, yes, do so in a polite manner. If not and it becomes bad report it.
Kenneth
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