Thanks! Not a good article - a great article...
We ought to redirect forum 3 in its entirety over to Danny's article for a week. It would cut down on the "chicken little" posts - as Danny puts it - and it would also make most posters feel better.
My take on the current situation is that G made a big enough change that it had to update not only the database at the various datacenters, but also the query-processing code itself - most likely adding "hooks" for new and future page-weighting and -filtering tweaks. So it's a big change, intended to support major search quality improvement in the future.
But in order to make an omelette, you have to break a few eggs, so we've all been seeing the results of stale backlinks. I can't comment further, because that is all I have seen - missing backlinks. Other than that, no change in rank or traffic at all - across several sites. But I think G knew there would be some impact, and decided to "Just do it and get it over with" until the next update restores the missing pieces. For those following the predictions of a third-quarter IPO, it would make sense to "get over the hump" of a major algo update now, rather than later -- Taking the long-term view that is so obviously missing in forum 3 these days.
Anyway, a very nice "sanity injection" article IMHO...