Was internal linking ever an issue with Penguin 1.0, and has that been part of this update - anyone?
That's the only thing I changed, and I'm seeing recovery.
Here's something we sort of agree on.
The network domains that got handed to me did not have an inbound link issue they had outbound link issues (e.g. paid links)... (quite similar to your link pages) where results & traffic dropped to ZERO from Google.
Fixing the outbound linking issues recovered the domains completely.