yes of course directory submission help in increasing backlinks that is most beneficial for our sites.
And of course a good quality directory is exactly that because it's only accepted good quality sites for inclusion in the category of it's choice with a well written description and appropriate title. Everyone wants a 'quality directory' to submit to, but the other side of the coin is that quality directories are only that because of their editorial standards.
Directory submission is generally worthless. Hiring someone from digitalpoint to submit your website to directories is even less valuable. Now, there are directories that are industry specific and high value. An example would be an "Oklahoma Attorney Directory", listing only attorneys in Oklahoma, and that has added value by including the companies services list, specialties, map information, etc. I would NEVER recommend doing directory submission for a website with a low number of incoming links. If you have a blog, build up high quality content that gets naturally linked. After you have a couple of hundred links, then MAYBE do directory submission. Directory submission is what I like to call "indian SEO" or better yet "Digitalpoint SEO". Edit: Here is an example of a high quality niche "directory": http://www.wisebread.com/top-100-most-popular-personal-finance-blogs/ Here is an example of a directory you can expect 95% of digitalpoint's so-called SEO's would submit to: http://www.addsitelink.com
Directories still do help but as some of them said here, it has to be quality directories only that gets the listing details page indexed with unique content.
Some directories will help you to increase your traffic and some don't , ablsolutely the one will help you at all is DMOZ but then there are some good quality directories wich have PR 2 -PR 3 or PR 4 are good to for set some backlinks to your site. Cheers EaSy7