Overstock.com is bailing on its affiliates in New York State, according to the New York Times newspaper. I find it interesting the company refrained from fighting the state over this issue, given Byrne's battles against Wall Street and school reform.

Byrne is so passionate in his fight against Hedge funds and the financial press, he told me in an interview about Grandmas eating dog food for dinner so "clowns on Wall Street" could drive Porsches.

But I never got the idea he embraced the small entrepreneurial sellers on his own auction site, perhaps failing to see them as hard-working grandmas, grandpas, stay-at-home parents, mom-and-pop businesses, etc. When the going got tough at Overstock.com, Auction sellers took it on the chin. I imagine many Overstock.com affiliates share similar profiles as online-auction sellers.

Amazon.com, however, is sticking with its affiliates and filed a lawsuit against New York and its governor. I can't wait to see what other Internet retailers do, and how it all turns out.