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skibum - 6:50 am on Nov 29, 2003 (gmt 0)
The last G update saw rankings drop for key (broader) terms but referrals have stayed about the same overall cause now more 3,4,5 word queries land visitors at the sites. As for bad SERPs from Google, it all depends what you are looking for. There are some great affiliate sites out there that ad lots of value but its really annoying to do a search for something and have affiliate sites repackaging content from the original site taking up the top-20 or 30 ranks for a particular product. If they make the SERPs really bad, everyone will stat clicking on the AdWords. They've got to at least watch the correlation between updates and tweaks and the percentage of traffic that goes to AdWords.
Will be working on both, but mostly focused on just making good sites for the end user. Things tend to taske care of themselves as long as some atention is paid to general SEO while building.