Although Google hasn't said they will demote sites submitted to directories, it means it because they have stopped crawling directory links. And that's it. Instead it pays to concentrate on article marketing as one entire link building channel is gone for now.
I agree with you. Directories are web1.0 and now it web2.0 time. Web2.0 like social bookmark will take the place of directories .
Here is the comment from matt cutts... http://groups.google.com/group/Google_Webmaster_Help/web/q-a-from-the-3rd-live-chat-oct-2008 Marjy, Boca Raton FL: Recently, you removed this suggestion: "Submit your site to relevant directories such as the Open Directory Project and Yahoo!" from your guidelines. Is there any chance that you will be discounting these kinds of links for ranking value in future? Matt Cutts: Hey Marjy . There's always the chance that we'll discount directory links in the future. What we were seeing was quite a few novice people would see the "directory" recommendation and go out and just try to submit to a ton of directories, even if some of the directories were lower-quality or even fly-by-night directories that weren't great for users. Right now we haven't changed how we're weighting directory links--we've only removed the directory suggestion from the webmaster guidelines. End of Story cheers malcolm
This vindicates my stand. Yahoo was the only credible directory that could give weight to a submitted site in real sense. Even the Holy DMOZ Cow wasn't above suspicion anytime ever.
Any good sites you can reccoment submiting articles and that will not delete them because of links ? oh, and Do follow
I am glad that Google did this. I was getting tired of having to shell out $299 a year for a stupid Yahoo link that never brought any traffic anyhow. Now I can use it towards a nice LCD TV!!!
I don't know if this is the main reason but when I submit my 2 sites to directories last week my keywords disappeared. I don't know if it will come back or not.