tedster - 6:45 am on Nov 17, 2011 (gmt 0)
I think it's important to devote as much time as you can seeking alternative traffic sources, as there is a strong possibility that you will not regain your Google position anytime soon, if ever.
That is also true, and no, it's not very happy news.
I'd say Matt Cutts gave webmasters very good advice right before Panda ever rolled out when he said "chase your visitors, not Google's algorithm." That's only appropriate marketing anyway. Search engines are just a middle man, so find ways to go straight to the source!
And then comes the paradox. The more you succeed in building that kind of traffic, the more Google may reward you.