As I've been working my butt off lately on reciprocal linking, I'm beginning to wonder... is it likely that Google will one day view recip linking as artificial inflation of popularity, or at minimum view them as no longer any indication of popularity? Will they then say "recip links cancel each other out" and throw them all away?
Recip linking is good, essentially for topic related sites
I dont have a prob with it and im sure any other entity *shouldnt* have a problem with it...the web is the "web" because even if someone did decide that linking was bad, theyd always have another part of the web that would allow it
sorta ties in with the "government entity" thread IMO :)
As Conard points out, reciprocal links often generate traffic on their own, in addition to any benefit with search engine results. If you have good quality links from related sites, you can't go wrong.
Just don't swap links with spammers, that spam link on your site CAN hurt you. (And, thinking of Google in particular, that link from a PR0 site won't help you much anyway!)