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europeforvisitors - 6:23 pm on Dec 15, 2002 (gmt 0)
It certainly could be part of the "on-page factors" algorithm if Google's own studies have shown that sites with outbound links are more likely to be authorities on their topics than sites without such links. And it's in Google's own interests to favor sites with outbound links, since Google's "unique selling proposition"--PageRank--is based on widespread linking.
Would Google or other SEs want to see a site that only has incoming links and no outgoing? Would this be part of the algo?