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I very strongly suspect that the search engines are very well aware of such abuses.
It wouldn't take much to find auto-generated pages, a few tweeks of their duplicate contents filters.
It would be very much in the interests of G and Y and MSN to filter out junk like this,
and eventually, suicidal not to.
Don't expect anyone selling push-button-site-generators to tell you this though. -Larry
But even back then, they all piggybacked (pages were added to the original site or were placed on new sites linked to by the original site) on sites with good PR (e.g. PR7). Without that high PR seeding, all those thousands of pages wouldn't even get indexed fully.