stuartc1 - 1:19 pm on Jan 30, 2012 (gmt 0)
In answer to your question "What benefit do I get from reporting paid links?" I'd say the risk in getting your own sites manually reviewed would outweigh the effect of getting paid links devalued.
If someone asked the same question 6 years ago, they would have been bombarded with abuse. People have always bought links for marketing purposes - it's not against any laws to spend advertising dollars somewhere other that google.
Personally, I don't think reporting paid links will do anything which could benifit you. Unless as someone already mentioned, the links are designed to fool search bots (hidden for example)... in this case then google could penalise them (perhaps).