The problem is there are too many people who have no sense of usability at all and over-do it. It seems to happen with every new trick that comes along.
Consoles were the first, a single exit console is very effective...even a couple or three of them can be effective if chained and filtered properly. But once you get past that, the users are ignoring what's in the window and instead are furiously trying to shut them all down and cussing. A pissed off user doesn't buy a damned thing.
Same thing with overlays. One that is removed easily or doesn't last long can be quite effective. However, there's always some ass who is going to have so much shit moving around on the page that you cant see anything underneath. Once again, surfer is pissed and frustrated and that credit card isn't going to be coming out of his wallet.
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