followgreg - 10:30 am on Mar 14, 2007 (gmt 0)

Google should give a reasonable amount of time for the website owner to fix the problem.
Most websites are harmless and they must know that.
Sometimes being hacked takes a few days/weeks before all problems are solved, EVEN if you are a responsible webmaster.

If I understand correctly most of the time these hacks point to the exact same sites and I think that meaures should be taken to put down companies generating such problems in the first place.
Penalizing webmasters is temporary solution, put down spam networks legally/officially for what they do and prevent them from owning any internet property is the way to go.