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Mr Khan said:

When someone gets a job by networking, a more deserving person loses out. Therefore, networking to get a job is cheating, and sites like LinkedIn should be outlawed.

You're presuposing that the person who gets the job via networking is never the more deserving candidate.  They're not mutually exclusive, at least by definition.  I mean, I agree with you if they're getting the job only because they know someone, but look at it this way: a resume is a list of skills with minimal supporting data; an interview is rough proof of skills; 10 people saying, "This guy was fantastic at X" is reinforcement of those skills by reputation.  Just the resume alone is a list of claimed skills.  You have to go beyond that or you've got no idea who you're hiring.  Say you're in a position to hire someone.  Are you going to chose the guy lists Y as a skill or the guy who lists Y as a skill and has 10 former co-workers backing him up?  If you think about it in terms of reputation, it's much more reasonable than if you think "oh, they just hire their friends!" (Not that there isn't some of that going on out there)