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Is there anything new to report on this topic? Further clarification from Matt Cutts?
End result of conversation is a major change to my site adding nofollow to many pages that aren't really relevant to ranking for anything.
I have a fiercely independent travel directory. I specifically do not sell links (paid review only) and I strongly recomend every site I link to (whole purpose of site).
For this reason I have been stoically resisting putting Google condoms on my links... until this week.
I have reluctantly come to the conclusion that Google simply isn't clever enough to recognise that a directory with an e-commerce page is anything other than an evil link seller.
So are you telling me I now have to go back through the site putting condoms on every internal link as well, just to please the Internet playground bully who, again, isn't clever enough to recognise the difference?
No thanks. My contact us page is trusted content. Does nobody here ever do a search for a business by phone number or street address, or even 'company name city name"? I do it all the time. Pull that info out of the index and suffer the loss of probably the finest of targetted traffic. Personally, I want that information up high on my site's list of important pages so that I rank at the top for those kinds of searches. Not ranking right at the top for a search like that gives one kind of an icky feeling.
This nofollow thing has some serious bite-back potential. It's been pushed by the SE's, then twisted by them for their own purposes, and is now being twisted again. What if some bright SEO person figures out a way to twist the use of it to get better rankings (this thread being a small step towards that)? Then they'll have a monster on their hands. And I AM going to say 'I told you so' :).
As far as contact pages go, a link from the main page or a couple pages would keep it indexed. But maybe it doesn't need to get pagerank juice from all 40k pages on a site? That's how I took it. I wouldn't alienate any page.