buckworks - 6:33 pm on Sep 9, 2007 (gmt 0)

Only if one is dumb enough to link to untargeted web pages

Yep, and the problem here is that a URL that started out as a perfectly relevant page to list in one's directory might later turn into something quite different, or simply be a dead link.

Link checking software can spot some kinds of link rot, but for a directory owner there's no substitute for manual inspection once in a while to make sure the links you list are still what was intended.

A common scenario is to list a good site only to have it turn into a domain parking page full of ads when the site owner forgets to renew the domain registration. I've even listed links that turned into porn.

Too much of that sort of thing will start sending "bad neighbourhood" signals to Google ... and Google certainly should perceive it negatively, because it's a quality issue for users too.