This Weekend Update is particularly exciting because of all the things happening here at All Things Digital. There is, of course, the upcoming D7 Conference, which promises to be more tech-extravaganza fun than a tweet from @sockington (if only half as cute), but this past week has also seen the launch of our very own iPhone app, meaning ATD has gone mobile–smart news for your smartphone (we’re still working out potential taglines).

Like past D: All Things Digital conferences, D7 boasts a great lineup of speakers and industry leaders. This year, the gang that’s all here is full of personality, wit, chutzpah and all that other good stuff that’s sure to make this one of the most interesting and revelatory events yet.

For instance, Microsoft (MSFT) is rumored to be debuting its latest upgrade to its search engine, Kumo, at D7. The conglomerate sorely needs a win here, especially in its losing battle to the ubiquitous Google (GOOG) for market share in search. Search was a big topic in general this week as Kara Swisher liveblogged Yahoo’s (YHOO) “chalk talk” and interviewed one of its speakers, head of Yahoo Labs and Yahoo Search Strategy Prabhakar Raghavan, an exchange in which Kara gets Raghavan to exclaim WOO! for “web of objects.” In addition, Google search bigwigs Larry Page, Eric Schmidt and Marissa Mayer could be found across several universities this week dispensing “be more lazy” speeches to fresh graduates.

This was also the week with the IPO for OpenTable, the online restaurant reservation company being the first in Silicon Valley to go public in a long time. Kara Swisher and John Paczkowski give their takes on the offering.

It was also a week of many faceoffs. Here’s a smattering of those that went tete-a-tete this week:

• Craigslist vs. Henry McMaster. Winner: Craigslist. The online classifieds site retaliated with a lawsuit of its own after the South Carolina Attorney General threatened legal action.
• Microsoft vs. the European Commission: In the latest antitrust case development, Microsoft and the EC have been going head to head over scheduling issues, of all things.
• L’Oréal vs. eBay. Winner: eBay (EBAY). L’Oréal lost its latest lawsuit against the Web auctioneer over trademark-infringing cosmetic products sold on the site.
• CollegeHumor vs. Amazon: More of a prank than a bout, CollegeHumor gamed Amazon’s (AMZN) system by artificially driving up sales of the Three Wolf Moon T-shirts, complete with outlandishly positive product reviews.
• Comcast vs. Disney: Though Comcast (CMSCA) wasn’t pleased with Disney’s (DIS) partnership with online video site Hulu, the two companies were able to put aside their differences to form an ESPN360 pact.

More next weekend, but in the meantime, look out for all our coverage of D7!

Craigslist this morning turned the tables on South Carolina Attorney General Henry McMaster, suing him for threatening to file criminal charges over its adult classifieds. The suit seeks declaratory relief and a restraining order against McMaster, who alleges that those classifieds often display advertisements for prostitution and graphic pornographic material.

“Despite craigslist’s legal immunity from criminal or civil liability under State law for unlawful third-party content on its Web site, and despite the numerous good-faith actions that craigslist has voluntarily taken to deter abuse of its service by third parties notwithstanding its legal immunity, McMaster has persisted in threats to criminally prosecute craigslist on the basis of third-party content appearing on the craigslist Web site,” the suit reads. “…Given Defendant McMaster‘s persistent and continuing public threats, craigslist is presently faced with the untenable choice of either completely shutting down all portions of its website that are directed at South Carolina or else putting itself and its management at risk of imminent criminal prosecution by Defendant McMaster.”

Or calling McMaster’s bluff, as craigslist has so excellently done here. And with great success, apparently. Within a few hours of the suit’s announcement, McMaster backed down, issuing a rather remarkable statement proclaiming himself victor in the spat. “The defensive legal action craigslist has taken against the solicitors and my office is good news,” he wrote. “It shows that craigslist is taking the matter seriously for the first time. More importantly, overnight they have removed the erotic services section from their website, as we asked them to do. And they are now taking responsibility for the content of their future advertisements. If they keep their word, this is a victory for law enforcement and for the people of South Carolina.”

Conduct the same experiment today and the results would be much different. Newmark’s name and photo would almost certainly be recognized, and perhaps met with brief attacks of intense terror and apprehension as well. After all, Craigslist has been eating the newspaper industry’s lunch for quite a few years now, just as the broader Internet has been eating its breakfast, dinner and midafternoon pudding cup as well. And neither are leaving much in the way of crumbs as recent metrics show.

Newspaper advertising revenues, which fell almost 8% last year, have fallen another 12% since then, and company reports suggest they will fall 15% more in the next few months. Seems the Internet, which has been siphoning away the newspaper industry’s ad revenue and fragmenting its audience, has bled it to near desanguination.

“Never in my most bearish dreams six months ago did I think we’d be talking about negative 15% numbers against weak comps,” said Goldman Sachs (GS) analyst Peter S. Appert. “I think the probability is very high that there will be a number of examples of individual newspapers and newspaper companies that fall into a loss position. And I think it’s inevitable that there will be closures in this industry, and maybe bankruptcies.”

According to a new report from the Government Accountability Office, all manner of sensitive or stolen military gear is available for purchase online. GAO investigators apparently had no trouble at all picking up night-vision goggles, U.S.-issue body armor, nuclear-biological-chemical gear and the aforementioned F-14 fighter components at online marketplaces. Many of these items could easily be used against U.S. troops or reverse-engineered to develop countermeasures or equivalent technology, yet they were shipped to the GAO “no questions asked.”

“Given that the United States has retired its fleet of F-14s, these components could only be used by the Iranian military,” the GAO noted in its report. “By making these components available to the general public, the eBay sellers provided an opportunity for these components to be purchased by an individual who could then transfer them to Iran. The continued ability of Iran to use its F-14s could put U.S. troops and allies at risk.”

A sobering revelation. Funny that eBay and Craigslist policies and procedures prohibit the sale of things like bootlegs, animals and whatnot, but F-14 fighter components are perfectly acceptable.