Absolutely! and the SPAM report should move it a long way forward, mixed with a dose of rampant Matt Cutts Google PR to set the cat amongst the pidgeons [ webmasters / siteowners / link sellers etc].
Adam Lasnik said:
Linking to bad neighborhood [webmasterworld.com]
We ran an experiment early last year which proved that Google will strip your PR and drop those pages on the outgoing site where relevance on theme is not respected.
However, i did notice that the network still exists and works well for those that applied it with a "few tricks". It showed me both Google's ability and lack of ability to detect networks.
It is not difficult for Google to identify pages which carry outgoing links on pages with terms such as "sponsored" , "advertising" , high PR sites, etc etc , plus link patterns and non related URL's - particularily directories IMO.
There is no doubt in my mind of Matt Cutt's clarity on G's intentions. I'm sure they're improving their detection methods. Playing cat and mouse with this is like a stategy of moving deckchairs on the Titanic.
[edited by: Whitey at 11:01 pm (utc) on April 16, 2007]