I've started doing that then I can decide myself which internal pages are worth distributing the pagerank to.
I think you guys have a limited view of what Blackhat as. As for the risk, if it gets the ball rolling, maybe it is worth it.
First of all, Google has a very complicated algorithm, but this is in its own interest. If Google were simple, it would be rather easy to be duplicated by competitors: everyone with enough money would be able to make a clone. Google did not appeared complex from start, it evolved together with the sites in the same way both the hunter species and the pray species evolve together. Google tries to make its algorithms harder to beat by SEO experts on sites which don't "deserve" and the sites try to adapt to the new algorithms or die. Through this symbiosis, the web shaped Google and Google shaped the web. Google's behaviour is already hard to understand sometimes, because it has so many factors that it's not possible to know what caused a sudden drop or increase in rank. My prediction is that it will get more and more complex because this complexity is what keeps everyone hooked on using it.
I have read lots of comments suggesting that all you need to do build a good site with quality content and other sites will want to link to it. I guess my question is what is the incentive for other webmasters to want to link to your site? I can see perhaps linking to a popular blog with something new and interesting to say or an article that you may want to share with you visitors but I don't think this would generally apply to most sites. You may have a very nice Ecommerce site but I think if you just sit and wait on other webmasters to link to you, you may be waiting a long time.
You are allowed to make link exchange with other pages, as long as you use the rel="nofollow" tag, to prevent manipulate the PR.
Google want to show up only good sites on top. And to find out that google made complicated algos etc. So just put your all efforts in making good site, and it will be detected by google and will put it on top. With Google..... If you want to be on first place then become best.