Why Can't Hagrid Do Magic?

[animagi_raven]

No: HPFGUIDX 43863

Heather mused whimsically in message #43836:
>All right, this whole Hagrid thread started me
>thinking (a scary new thing for me!:)). Why, exactly,
>is Hagrid not allowed to do magic? Canon tells us that
>he's "not supposed ter do magic, strictly speakin'"
>and the reason is because of the CoS incident, but
>this really doesn't make sense to me. I can understand
>about things that require licenses, like apparition,
>but why can't he do basic magic?
>
><HEDGE CLIPERS SNIP>
>
>Heather, who thinks that keeping Hagrid from doing
>magic after his innocence is revealed is appalling.

IIRC Hagrid was expelled from Hogworts for raising dangerous animals 
in secret.  IMO it was suspected that the professors glossed over the 
opening of the CoS as a rumor.  The student death was probably blamed 
on the spider (but how did a spider turn someone to stone?), but some-
like Dumbledore and Hagrid - knew that the spider was not 
responsible.  And did suspect that the Chamber had been opened.  The 
fact that Tom Riddle found out Hagrid and then the basilisk was no 
longer active, might have tipped Dumbledore off to Tom Riddle's
true nature.

Animagi_Raven who has a paper cut...  anyone have a phoenix handy?