Trying to avoid being judgmental, but Payday Loans is not exactly a quality sector. That it is dominated by churn and burn sites is hardly a surprise. It is hard to think of a sector more suited to rampant short-termism than Payday Loans.
Google does not advise on how to build Churn and Burn (C&B) sites. They try and suppress them (at which point they are "burnt"). If a sector is dominated by C&B, ply your trade elsewhere.
Also note, C&B is the opposite end of the spectrum to the "only Brands rank" problem. You can supress C&B by requiring (not just favouring) Brand signals. And dialing down "Brandiness" means more C&B.
Personally, in the narrow terms of defining a viable business, I see no problem with a business model based on C&B. Just don't expect the same techniques to work for anything that isn't going to get burnt.
In fact, the more "legitimate" businesses move from aping C&B techniques, the more its only the C&Bers using them. Which means they can be suppressed without collateral damage.
Saying you're ALWAYS outranked by SPAM isn't the same as saying the same SPAM always outranks you. It's constantly being burnt, but replaced by more churn. The only way to climb out the mire is to use techniques that C&B don't. Google is trying to talk about what that might be. It's not advanced stuff, and many of us have a better idea than you can glean from official advice. But moving newbies away from trashy link building is part of a long term strategy for cleaning the SERPs
ETA - I realise I'm mixing threads here, but the content of previous posts is also heavily influenced by the parallel Google Payday Loan [webmasterworld.com] thread.