I'm with you on that theory zeus. I spoke to someone the other day who used to work at MS and is familiar with some of the stuff going on in the Bing algorithm. Click trails played a big part in the way they were doing things (2 years back already).
I'm convinced Google does similar stuff to generate the Panda results, just more advanced. And they're more willing to ban the whole site for one sub-par part. That feels mostly like a cop-out on their part to me.