To your point I have seen lots of crap links flow in with no penalties.
And... time has proven me correct.
The information I gave you here was ahead of any announcements from Google. So if you followed my post in this discussion from April 2016, then you would have been ahead of the curve, ahead of the SEO herd.
Gary Illyes and Mueller have recently stated that it's not necessary to disavow for Penguin and that Google is discounting crap links automatically. It's not a new development. It has been this way for a long time already.
I'm using what I've read in scientific research and patents to understand what Penguin is and, working with that theory of what I think Penguin is (since January 2016, at which time I shared my science based hypotheses privately), I already understood that Penguin discounted crap links.
Everything coming out of Google totally aligns with my theories of what Penguin is, including the recent announcement that it is not machine learning. So I'm pretty confident I cracked what Penguin is and have the general outlines of how it functions.
Question: Why does site with more toxic links rank better?
Answer: Because your backlink data only shows 30% to 50% of backlink data.
The data is incomplete.
Is a bad idea to come to a 100% conclusion when the data is incomplete
The Backlink Data Does Not Tell Complete Story Now, as far as believing what your backlink checker tells you, three years ago Eric Enge did an experiment to find if there was any truth to Rand Fishkin's unfounded idea* that Facebook & Google+ shares affected Google's algorithm. Matt Cutts looked at Eric Enge's data and told him the study was flawed and that there were a lot of links powering the rankings that Eric Enge was unaware of. Eric Enge smartly realized that all the backlink checkers were only showing about 30-50% of actual backlink data. Thank goodness for people like Eric Enge, who put ideas to the test. I really appreciate Eric's efforts at digging down to get at the truth. :)
Link to SEL article here. [searchengineland.com]
While I appreciate that backlink checkers have come a long way over the past three years, I'm fairly certain that threads like this one are indicators that backlink checkers still have a long way to go and are not showing you all the links that are powering a SERP ranking. And I will go further and hope this doesn't pop a blood vessel from the strain of figuring this out: not every SERP ranking is powered by links alone.
Toxic links are an SEO Myth. Do you believe me now?
;)
Roger
*There were no scientific studies or patents to hint that Google or Bing had developed such a Facebook/Google+ ranking factor. Rand basically used personal SERP observations to base his theories on, a poor way to develop a theory. The lack of a patent or published scientific research by Google, Bing or a university should be a red flag on anyone's theory.