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The early Thompsons were complex to manufacture. They simplified the process and mass produced them. Many WWII veterans swear by them. The main problem was that they were heavy.
It is "obsolete" in the same way the Colt Single Action Army is considered obsolete. There were improvements made in the firearms technology areas which resulted in "better" SMG's. Like the Colt 1911, it is a classic, still well regarded and perfectly functional in today's society. It is still used in some machinegun matches.
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