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Go for quality. You'll never have to worry about that. I have sites with fewer than 10 links that consistently do much, much better than sites I know to have thousands of cr*p links. All that effort, no reward, and occasionally a bad neighborhood penalty.
I can't see the attraction!
The banning question is a big worry. Anyone know of anymore stories?
You may or may not make more money going that route. Your chances of being penalized or banned go up.
There are no hard and fast rules or guarantees, which is what so many people seem to want. The simple fact is, this is what business is all about: Risk/Reward/ROI.
plain old fashioned hard work / little or no risk / roi / luck.
But i agree that the choice is yours; certainly the higher the risk, the greater the potential reward - but even those who get such rewards, often do not get them for long.
While those who slog patiently away, taking a long-term view, often do very well indeed, and probably sleep much better.
Don't feel the need to do anything just because your rivals do - especially if you cannot be sure what it is they are doing right. They may be thriving despite minor spamming, not because of it.
Your choice ;)