Personally I'm inclined to side with Jay. I haven't read through the essays that people have posted, so if I repeat anything I apologise.
Habbox also "endorses breaking the law" by allowing WoW and runescape items/currency to be exchanged to real life money. It also allowed people to trade credits for rares, which habbo didn't like. It allows talking about illegal drugs, and some of the details involved in that such as how/where to get them. It steals copyrighted images from habbo.
What you have to remember is habbox is not the police. It is not habbox's job to enforce the law. The reason this forum exists is to give a group of kids a place to talk about things. In real life, kids talk about drugs and underage sex and illegal things all the time, telling each other links to websites and how they're going to do their next bit of weed. If kids are caught with weed or illegal copies of operating systems, the police are not going to go to the school and arrest them for endorsing discussion of illegal activity.
Obviously, this is a bit out of context, but the theory applies to the forum. Habbox already takes itself far too seriously as a forum, with ridiculous amounts of red tape and a complicated heirachy amongst other things. Trying to act as the police as well as forum management would only be adding to the problem.
EDIT: As for the rule about swearing overruling illegal activity, the swearing rule is in place to keep the forum pleasant, not to keep people from being arrested for swearing. That's like asking why there's a law against fraud when there's already a law against murder.





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Fair enough but it is a management decision at the end of the day, not mine or yours. 


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