Fathom you say PENGUINized links are links dropped from the link graph... that's why you lose ranks. I think you not exactly correct. I am still on page one on Bing and Yahoo. Yet just like Ralph_Slate says there appears to be a -10 penalty. I can stay real constant about 10 to 12 spots below where I should be. That is not because of devalued links. That is because some automated function is implementing a -10 penalty. A one or 2 page BS site on a subject should out rank a site over 15K pages on the same subject matter. And when this hit I didn't make any major changes and any potential causes that I am aware of has already been tested.
Bing & Yahoo are not Google (with PENGUIN).
I also would gather not all links are devalued only ones deemed inorganic. Some websites lost 20% of traffic other lost 99% and the difference tends to be the level of inorganic links that drove results.
I also would suggest that Ralph_Slate issues were unique and not directly related to PENGUIN. Like the sun at the time of a total eclipse darkens - it isn't because the sun stop shining it is because the moon got in the way. When PENGUIN is incorporated into the algorithm there won't be any oddities left.
[edited by: fathom at 8:47 pm (utc) on May 6, 2013]