Very powerful idea with lots of scope to it. Google purchased Freebase [freebase.com] a while back and I think with their (downloadable) dataset anyone can put this algorithm into action for themselves.
The basic gist of the data is a hierarchical tree of entities and attributes, a bit like Wordnet [wordnet.princeton.edu] where you could understand that Clint Eastwood & Kevin Bacon are both people, and they're both actors, but it's also going to tell you what films they've been in too.
I could see this being applied to authoritative authors of an industry. If you have a lower Bacon number relative to Brett Tabke, Danny Sullivan, or Matt Cutts, then perhaps your articles should be placed in prominent search engine result for relevant keywords... relative to the lower bacon numbers.