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The original reason was to give a bit of extra beef to the links with them being on different IP networks.
However, now it'd be a lot easier if they were on the same or a pair of hosted servers I have for sharing data and being on the same platform etc.
Do you think it's still worth keeping them on different servers or can we assume Google et al know exactly who owns them and any benefit is mitigated?
Besides any benefit mitigated, you're taking a risk of a potential Google penalty.
My advice, stick with legit link building tactics and stay away from cross-linking your sites.
Also just be sure that these links don't make up a majority of your backlink profile.
Edit to add - I interlink sites on the same dedicated server.
[edited by: BradleyT at 5:22 pm (utc) on Mar. 26, 2009]
joined:July 29, 2007
He didn't use any sitewide crosslinks and he did a good job of only linking when the link would provide value. I can confirm that many of the links carry weight.
Like BradleyT said, don't let them make up the majority of your backlink profile and don't spam them everywhere and the occasional link is fine regardless of how your site is hosted.