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From the perspective of providing more habitat to salmon, yes elimination of waterfalls would boost salmon habitat. But that might also come with unintended consequences, such as attracting eagles and bears upstream. "The ecosystem" is something that evolves and builds over long time periods. So when we do major short term damage we're not going to see all of the consequences. That's why something like damming a river may be viewed the same way as blasting out waterfalls; there are long term consequences and many variables at play, and you won't get to find out how the environment responds to it until well after the damage is done.

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