Well it seems like negative SEO works. I tried it on an old domain of mine that never had been SEOed because it had a natural SEO rankings (PR7). I made the site years 8 years ago and gave away free stuff (thus why there was lots of links to it).
I bought $500 worth of ezine articles, xrumered blasted it with profile/ blog posts and can confirm that the site now appears on page 7, where it use to be on page #1 for at least the past 4 years.
Furthermore, I tried this on two other domains I had and both of those sites are now way back in the index where they previously held page #1 and page #2.
The new update basically means NEGATIVE SEO is going to flourish now.