wheel - 8:01 pm on Feb 4, 2011 (gmt 0)
If you're tied to a site, then its a problem. If you remove your emotion from the equation and treat a $10 domain as a $10 bill, then Google's penalizing a $10 investment isn't that big a deal - not if you can get back to where you were quickly with little effort or with relatively repeatable techniques.
The only people that care about getting penalized in Google are those that have too much invested in a specific site. And I could make a point that doing that isn't a very smart idea (despite the fact that that's the model I typically use).