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Considering the target audience, I don't think (2) would be necessary, or desired, on MathOverflow. On the other hand, it could be an interesting addition to Math.StackExchange.com.
(1) is a bit interesting. I have some reservations about what you mean by a "recommendation service". Many of us already have a backlog of "papers that one ought to read" that is more than "papers that one can physically read in a lifetime"... :p Any further unsolicited recommendations are likely to be ignored. An integration with MREF will presumably save, on average, a few seconds of my time each day.
(Of course, considering how we have no access to the source of MO, the standard "this discussion will be purely academic and possibly not implementable" disclaimer applies.)
Now, if MathSciNet's reviews had a link to the corresponding MREF result, that would be useful!
@Ryan: really? There be arXiv track-backs? Cool! (Can you show me an example? Not that I don't believe you, but this feature can be blog-worthy.)
@Mariano: you mean the link labelled "link" on the mathscinet reviews? I always right click that to copy the link location when I have to send e-mails or post here.
@Willie: http://arxiv.org/abs/1011.0896 . Click "1 blog link" on the lower right.
Ah! MathOverflow is counted as a blog! That's why I didn't notice it before. :p
Thanks Qiaochu.
The "blog links" are called this because the links are created via the "trackback" mechanism, which is only really implemented by blogging software. Anton and I implemented that trackback mechanism for mathoverflow by hand, manually scraping recently edited pages for links, and calling the trackback script on the arxiv directly.
There's a URL http://arxiv.org/tb/recent that shows all recent trackbacks. It's amusing that MO dominates this list!
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