n00b1 - 5:37 pm on May 2, 2012 (gmt 0)
Whilst I subscribe to this logic myself the reality of the situation is that Google has penalised the website for external factors (links) which are 'outside the quality guidelines'. This new 'Penguin' update seems to have simply intensified this. There is always the option to just sit tight and see what happens but I can't help thinking it would be easier to start again. At least in a way that as far as I'm aware can be reverted if I can't get where I need to.
I certainly think I've got the content element under control and my website has not been a target of any of the recent Google Panda updates. I can also redirect and build upon the powerful links and know I will get plenty of natural backlinks in the future. At the moment I am getting a fair whack of my traffic from people discussing my website on various forums and in that sense I am not wholly dependent on Google. I just see a lot of wasted potential at the moment.