can anyone explain how an entire site can exist inside TOR? I mean I read that it's like a fake TLD that's correctly translated but wouldn't the creators of the TOR software have to manually code the software to accept and properly route fake TLDs? So pull the plug on that idiotic feature! I'm still not convinced they designed it that way in the first place but I can't imagine how else someone could set up a website that exists only in TOR and have it actually work.
Btw with all the 3rd party code and direct to browser scripts and FTP operations and stuff, any web server sitting only in the TOR network would get identified and found out in like a day. So if those idiots think they're safe, they're not.
I don't know much about the technical side of hosting tor websites, but on the client side the browser bundled with the tor distro is locked down and designed to explicitly notify you if there's embedded content from another website on the page you are viewing, asks you if you want to run javascript on a page by page basis etc. etc. and silkroad doesn't raise any alerts. So looking at it from the Tor web-browser, which is designed to tell you if there is a breach of anonymity I trust its security.