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I don't see ICLR as TCS, tbh, and also I think that policy is wrong. (But even then, my comment stands, as technically nobody forces anyone to submit a paper to ICLR if they'd rather not.)
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I agree with your point on the merits. The problem that @stein.ke raises though has its own cascading effect. More people decline reviewing, fewer reviewers, more motivation to use AI in reviews, and so on.