A case study I am working on from past few months to find a quick solution for ranking drops after Panda and Penguin penalization, and at last I found a solution which could work like charm. And the solution is domain change!, yes.
Changing your primary domain, redirecting the old domain and content to new one can revert back all your lost rankings. This case study I did is not just based on a single website, but I did this on around 4 websites of my clients, who faced this kind of issues and it worked and reverted all lost ranks, I know it is very difficult to change a company domain name, it is not that is.
My Case Study goes like this:
First of all, I was hit with algo update on one of small niche website and I started working on fixing it, I did changed a lot of things but still the recovery is not that impressive (I dodn't know what else Google want from me?). However the domain I chose for the niche was not that impressive (I didn't like it that much), so I decided to change it and add more content and designing it with micro-formats etc. And I did it.
I sent the request in Google Webmaster Tools that I moved the domain to new one. After exactly 6 days (probably most of the old website links are moved to new one in SERPs), I see that all the traffic I lost was back in one night and all the rankings of the keywords I lost is also back to the positions where I lost them. Ta da!.
By this experience I understand that the penalization caused to your old domain wont harm your new one, but at least this time you have to start working on your new domain and update your old pages with some great content (seriously, I did this) or else you may face the same conditions after any new algo changes. As you are already out of the penalization headache, you can simply start working on your content fixing job.
Let me know, what do you think?