StoutFiles - 5:11 pm on Sep 6, 2012 (gmt 0)
Why sites can't recover: They are imposed a glass ceiling on potential traffic based on their aggregate site rating. This way Google can heavily feature the most well known "brands" while rotating everyone else into the mix for the leftovers.
Bingo. Panda isn't broken, it's just pushing all the small sites out of the picture, which is exactly what Google wants. If you compete with a large brand and depend on Google for traffic, you are in trouble.
I've worked on site that had a very different result, rather than a glass ceiling of any kind. They were Pandalyzed on the first Panda algorithm release. They recovered during the first Panda data refresh in January 2012. They have now are not simply recovered, they are enjoying record, well-targeted traffic.
I find these examples to be outliers instead of the norm. The majority of small sites will continue to suffer.