Hyper-kun
First of all, I am not going to try and defend PG but calling it "snake oil" is somewhat off the mark.
PG has never claimed or pretended to hide or disguise your IP address, this is a mistake that novices often make, and to accuse PG of perpetrating that myth is just plain wrong. After all, no organisation can stop users from misinterpreting or imagining facilities that don’t exist in their products.
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Of course, those hosts cannot connect to you but any other can. They can simply scan you and connect to from *any other* host.
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However, most people that have PG2 also use a firewall, such as ZoneAlarm, Norton Personal Firewall, etc. and it is the job of the firewall to protect your PC from such scans.
I am sure you realise that PG2 of itself cannot protect your PCs from all attacks, and it does not pretend that it can, as you and I both know it is an IP blocker and it works very well at what it does.
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It could help against a certain amount of sabotage, corruption and spamming on the network but it doesn't hide you at all.
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And I can wholeheartedly agree with that statement because once, when PG was down, someone or something planted a keylogger on my PC. Luckily for me I had the necessary protective software to find and delete this malware.
Finally, I would like you to explain or expand upon your statement:
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The major flaw of PeerGuardian is that it's working on the wrong layer.
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Because as as far as I am concerned, PG does exactly what it claims to do, no more or no less.
Awaiting your reply.
UK Bob