I am totally with you on this one! In my area I see tons of sites showing up from out of nowhere. I also see a lot less results for a lot of searches I do, results that usually show hundreds of thousands of pages now is in the tens of thousands instead. For the searches I do, like for widgets for sale, the results haven't changed a lot, same sites (except mine) show up but as soon as I add a location I get all sorts of cr@p. Blogs, sites from wherever, ebay listings and tons of pages from sites with location sub domains.
It seems that they can't get the location searches right and that their usual filters doesn't apply anymore.
I still see a lot of chinese spam sites een with the infamous .[space]cn.
As far as sites being in supplemental I also agree. I have been checking sites and lots of them have tons of pages in supplemental. Most of my pages have gone supplemental for some odd reason that I have spent hour after hour trying to figure out why. Hijacked? Duplicates? Spelling errors? Other penalties? Not fresh enough? Links changed/added?
Has anyone here "recovered" lately?