The title says it all. If I want to make a proposal, but I know there is a stackexchange 1.0 site out there that covers the same ground, should I make that proposal anyway?
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It may be even better if you approached the current site owner and convinced them to submit the proposal for their own site to be migrated? :-)
Yes, create the proposal. If it gets through commitment we'll sort out the implications for existing SE 1.0 sites (see http://blog.stackoverflow.com/2010/05/migration-of-se-1-0-sites/).