The link spam poster boy in my niche got away with blatant abuse for years. He dominated the rankings of big money search terms by creating a flagship site, surrounded it with a whole bunch of smaller satellite sites and then interlinked like a man possessed. Worked like treat for years.
Well, Google finally caught up with him and he copped a -50 a few months ago. No problem, he just moved to a new domain, created folders instead of satellite sites, moved all the original content across verbatim and redirected the old sites to the new one. Viola... the new site debuted at #5 of a 20m search term. Don't good rankings require Trust Rank, and how can a new site that gets its links by way of redirects from a penalized link farm possibly have earned any Trust Rank?
I have difficulty understanding Google's apparent willingness to allow back operators with the clear intent of gaming Google's search results at every opportunity.
What is your opinion... should long term offenders be given the boot? Should past history count against them?