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I don't think debates help or hurt the incumbant all that much unless they totally screw up. People watching already know what the sitting president's views are, etc...
Debates can help or hurt the challanger though. For some it is the first time they have seen and heard the candidates views other than TV soundbites and slogans. Also it's important that he/she look presidential. I think Kerry gained from this election's debates and would have lost by more otherwise.
That being said, I also think the ability to debate well is not all that necessary to be a good leader. As I remember on my high school debating ream, the best debators were quik witted and clever but not necessarily leaders.
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