Problem with that is to some people, including a huge chunk of my readers, links to *.dreamwidth.org count as external links if they're coming from matgb.dreamwidth.org
I use DW as my blog platform--half my readers are DW/LJ users, the other half come from all over the place, my blog is where they are, anything that takes them away from my blog is external. Sure, to many DW users, they're on their site and they're not planning to leave it, but that's not necessarily normal behaviour.
If you're going to have an option to label external links, if I were to use it, I'd want it to label anything not part of my bit of DW as external, as to me, it is.
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I use DW as my blog platform--half my readers are DW/LJ users, the other half come from all over the place, my blog is where they are, anything that takes them away from my blog is external. Sure, to many DW users, they're on their site and they're not planning to leave it, but that's not necessarily normal behaviour.
If you're going to have an option to label external links, if I were to use it, I'd want it to label anything not part of my bit of DW as external, as to me, it is.