Let me explain: When I crawled geocities and re-hosted it under reocities.com I was trying to achieve something positive. I did not realize how infested geocities had become with spammers, linkfarms and other trash.
Probably at least a few million of the accounts were either compromised or somehow tricked into placing low value links on their pages at the behest of SEO types that were engaging in 'scalable link building'. Comment spam and so on.
Very annoying. And I really did not know what to do about this, it felt wrong that I'd be contributing to these businesses somehow even in a peripheral way.
And then google decided to penalize 'spammy links'. So the tables are turned. Not a day passes without some whiny email from some SEO character that is trying to clean up after their past misdeeds. They try to automate this of course (imagine that their trickery would no longer scale) so they spam tons of automated emails to webmasters threatening to use the google disavow tool because they have been penalized.
So the tables are turned, for a change. Suddenly all those trashy links are degrading rather than enhancing the stature of these companies and their ill motivated SEO brethern.
So, I hope this stays, as far as I'm concerned google can shut down the disavow tool and those that lived by the sword should die by the sword. It's like an 'own goal' by the bad element in the SEO community.
At the same time google should be extra careful that it does now allow good websites to be penalized by activities from even shadier SEO types that turn around and use these facilities against their competitors (rather than to avoid being penalized by it themselves). Especially since if a competitor successfully uses google as an offensive weapon that they can remain unidentified or undetected. (Which makes me wonder about the motives of the OP not to disclose who this was, it would be a lot easier to verify the story, and any subsequent retaliation could be dealt with in the same manner.)
But overall this spammy links penalty is a good development.
The disavow tool is used as a threat against webmasters to take manual action to remove the spam that was placed in an automated way by the perps in the past, that's a really bad balance there.
I'm completely not impressed by these threats for reocities.com I only care that the content is online. I guess I could replace all the outbound links by 'nofollows' but that would hurt a lot of good sites as well and I really hope that google can tell the difference between 'good' and 'bad' links in this respect. (If they can't that would be a huge problem)
edit: the voting on this comment is interesting, 1->+9->+1->+9->+5
Never had a comment oscillate like that.