@teyc - I will take what you have said as a huge compliment. I wish I was as smart as you say I am. When this happened, we considered our options -

1. We ignore the comments. But that will seem that anyone can say anything and get away with it. It is wrong.

2. We could engage in a war of words on Twitter. It seemed stupid to go that route.

3.Write the entire story and present how we felt about the whole thing. - That is what we did.

We did not consider SEO or link juice to setup a separate site. Our blog uses Posterous and to my knowledge Posterous does not support embeddable Twitter widgets. So we went the separate domain route. I was actually of the opinion that a post on our blog is better SEO. I posted this on social networks to publicize our response. I posted it on HN for a meaningful discussion which I think happened and I learnt some good things and some mistakes.

I definitely don't want the Australian - Indian racism debate anymore than you do. I think it is disgusting. We were attacked for no reason and we wanted to respond. It's Monday morning here in India and we are back to work on improving our Product.