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The algorithmic differentiation of, for example, "genuine" link popularity and keyword density from spam is inherently difficult, and we're getting better at blurring the lines.
In any case, I think the potentially effectiveness of spam tactics until the offending site is "caught in the act" with a spam report is an ineffective deterrent. Incremental and immediate penalities for "spam-like" traits might work better to discourage this sort of thing, although that again raises the question of where/how to draw the line to distinguish spam vs. not spam using automatic detection.
Philosophically, I prefer innocent until proven guilty but if I good enough detection system was developed (with a manual review process), then I think immediate penalties could work.
What I am sick of (personally) is that most sites ranking high are so tweaked out with header text, keyword repitition, etc. - just makes the web look so "tweaked". I like nice, clean designs - easy to navigate and use and not a bunch of YELLING text (H1, H2) all over the place..
I've noticed this too. Other search engines seem to have a greater problem of sites getting page 1 of the SERPs where I ask "now why is this coming up so high?" In fact, I use that to my advantage. When I am really trying to search deep on a topic, because of this the minor sites on a topic will often do well on the other SEs, and thus makes it easier to find this stuff.