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1) I don't believe that google will penalize me. C'mon, they are clever enough for this.
2) Even if they do, that's there problem. They need quality content to work. It's there job to find the quality and if they fail, it's there fault and if all the webmasters would start thinking more about usefulness than about google the web (_and_ google) would be an even better place. <added>I can have ideals, can I? :-)</added>
Anyone want to disagree? :-) Some things must be said. Sometimes, if I read all these SEO threads, I become furious. :-)
I dont think google will come down hard on 1x1 images in general, just the ones that are spamming by trying to hide links.
It would seam very harsh for Google to penalise sites for using 1x1's because as you say they can be used for design. I think Google should penalise 1x1'a used as image links because they are only there to fool the spiders and are of no real use to users.
I asked around extensively before I decided to use this technique and decided that as long as I don't have any hidden links on this image it should be safe. The site in question was launched in November 2001 and so far I haven't had any indications of problems in search engines due to it.
Okay, thanks n&b. I assume this means the affliate networks that use the 1x1 for tracking would be okay, too?