In a nutshell, a black hole is a site (or a network of sites) linking only with itself and using nofollow to link to the outer world. If you're an authority site with a lot of content, you will get more and more exposure in the first Google results. A good example is Wikipedia, and NYT too. Have you tried to turn a site/network to a black hole? What do you think about it?
Not every site can do that, the reason Wikipedia succeeds with it is because of the massive content it has on it
I think authority sites are can become black seo. For example official government sites, don't have outer links, but they get incoming links due to the fact that certain information starts from them.
It's not really the nofollow links that help those authority sites. They both have huge amounts of unique content, plus tons of backlinks. The nofollow links are really there to limit the spam they get.
i would agree with vansterdam. With any decent moderation sites should really be do follow. Share the love!