Two quick questions: 1. Let's say there is a commonly used keyword used that your website is about. If you have it automated so the first time you say that keyword in every post, it links that anchor text to the home page, could that harm your SERP? The link is accurate in that it refers to a keyword that the home page is about, however I'm not sure how google views that practice. 2. Let's say you have a front page that has around 10 posts available on it before the next pages. They're all closed with only teasers visible (except for the latest post which is visible in full), however nearly all of them use the same anchor text to the front page in their first sentence (although it is used entirely naturally). This means that the home page that is being anchored to, is actually displaying links to itself several times over. Could this be really harmful? It's not intended to be this way, but it's a byproduct. For our primary keyword we sometimes see our home page several pages back when it should be on the 1st/2nd page, then other times we see it right where it belongs. So we're not sure if this is a sign google is dancing, or if we're getting punished for it or what. This only seems to be happening with our home page for the most part, which is what makes me think it has something to do with the linking strategy.
Interlinking is excellent - to help flow page rank to your internal pages - help in SERP ranking in Google Ref: http://www.youtube.com/watch?v=4SAPUx4Beh8
That is not harmful. Interlinking is actually a part of on-page SEO. Keep doing what you've described above and you'll probably see some positive results. I do this to all of my webpages.
Yeah interlinking in an on page seo is good but I do not do interlinking to an off page seo work because it does not look natural.
Do you think that Google penalizes sites for having a menu? Isn't having a menu basically the same thing? Creating links back to the main pages of your site? In my estimation, it's not at all likely that Google is going to penalize you for your internal link structure.
No, Google won't blame you for having a menu. If they start doing that, then I don't think a lot of people would have websites working today.