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tedster - 6:02 pm on Nov 26, 2009 (gmt 0)
According to the leaked human reviewer training documents, one of the major focuses is hidden content. There are so many ways to hide things on a web page with today's technology that a 100% algorithmic approach would be a nasty undertaking. It would probably generate too many false positives, even as it missed major infractions. Google really doesn't need to worry about missing hidden content if it doesn't generate lots of traffic for the page.
I've had pages doing this for years, and I've noticed no problems. If you disable the JavaScript, it probably would not get caught by an algorithm. But if the page is ranking for a significant search term, then the human editorial army would be reviewing it, and that's how it would be caught.