There are all of these SEO techniques that used to work and now don't work as well anymore: Recip. Link Building Article Directories Forum Postings Blog Postings Directory Listings They used to work for SEO but their effectiveness has lowered over time. Do you think any of this has to do with the Google toolbar watching your every move? I mean, is big brother Google watching you doing all of these techniques, seeing your pattern of what you are doing and then penalizes you? I don't mean for this to sound like I am wearing a aluminum foil hat, but I have always wondered about this. Let me know of your thoughts and any other paranoid thoughts.
I agree that certain SEO methods that used to work no longer work, but I still use some of the ones you listed and have seen good results with them. However, I completely disagree that it has to do with google watching our every move via the google toolbar. First of all, you're assuming everyone has the google toolbar installed. Obviously, most people don't. Second, even if everyone did, it cannot be possible for google to record every link exchange and directory submission. This is because I could (and did) pay someone else to submit to directories for me. Also, someone else could sign up for a link on my site automatically without me having to approve it. I think the reason some of the things you mentioned don't work anymore is because search engines (like google) are aware that EVERYONE does them and so they simply don't give them as much weight as they used to. Don't be paranoid, it's just the nature of the ever changing web. SEO in 2007 is going to be different than in 2004 just like it will be different in 2010.
Of course Google is tracking all that data, not only that.... blogger, analytics, feedburner, and all other Google products....