Jeesh, massive spun text paid links from a network of 200+ sites tied so tightly together that ALN and BMR look like James Bond and MI-5.... shouldn't come as a surprise that a nice bit of public slapdown would occur.
Google only needs to make a couple of examples out of sites like the Chome slap for 'browser', Interflora, the newspapers, and so on so that once again people stop 'buying' organic and start buying PPC.
Advertorials and media companies in general are now aware that they're the targets of opportunity. PR stripped if you sell PR, and major erasure if you're buying them.
I also was impressed with the way Webmaster Guidelines have been updated to specifically name low quality directories and bookmarking sites as violation of the link schemes policy.
I'd bet we can expect to see continued Google pressure on flagrant dofollow link sellers, additional devaluing of meta-indexes of information which add no real value or use serious editorial control, and a people taking their link selling to the back room instead of high street where Google isn't a part of the good ole boy network.
Regardless, the link profile clean up industry is booming and about to completely explode as people try to ditch the good links of yesterday which are the poison of today. Got disavow? It's better than milk.
Peanut gallery advice?
People stop going for volumes of links. You can absolutely kill it with some wickedly good, original content that frames the information in a unique manner and contributes something to society, combined with a handful, or two, of high trust / high authority backlinks from topically niche relevant sites that serve the same country as where your prospects reside.
Invest in building something remarkable, whether it's a white paper, case study, research, plugin, application, calculator, foon (better than a spork), infographic, video series.... just something remarkable, worth sharing, worth bookmarking and not a rewrite/rehash of ezine articles and wikipedia entries!!!
Think twice, build once - now is the time for you to shine
