I too have felt the wrath of G, Florida update hit me hard, really hard, so I feel your pain.
I have since reevaluted and moved on, now pure squeaky clean white hat not making as much money as before but it seems to be a more stable income, it does annoy me though when I see black/dark grey hat sites ranking above me, I usually report them, I am hoping it is just a matter of time before they get penalised and I take their place but not holding my breath as its a long waiting game to play, so I am not seeing great rewads from obeying the TOS compared to disobeying them.
IMHO Since G became a public company their priorities have changed, used to be:
now it appears to be:
#1 Share Holders