Another scenario is now that paid directory links are the ones that Google counts, you get any tom, dick or harry directories all over the place selling their links... Another scenario is a huge authority site selling quality links.. You have both ends of the scale for either. I don't think you can prove either is more valid with these kinds of arguments. All I know is that everyone in the directory section of this forum is probably pretty happy upon hearing this news..
hasen , there is a large difference between Selling text links and Text Advertisements . See this site : http://in.indiatimes.com/ - look just under Britney's pic . Simply Mary and credit Cards . Now , that is an advertisement , if you can understand that . Indiatimes.com is a PR7 website , but those two links were NOT sold giving outgoing PR . But see this site : http://www.photoshopforums.com/ in the footer links , theres websites of Ink Cartridges ... I am sure the ink cartridge manufacturers or sellers are not advertising or planing to launch a campaign to sell ink cartridge worldwide to all members og that photoshopforum . They surely do not expect any sale from that .
And people wonder why digg.com is switching to Microsoft to serve its ads. Now that's some serious action. Collectively, even some of some of us small-time novices (and experts) can make a statement to Google via putting a dent in their pocketbooks. http://www.businessweek.com/ap/financialnews/D8QJSN180.htm The question is who is more evil, Google or MS? Choose your poison. Right now I know that Google is the number one SE, but if more publishers switch to other means of displaying ads for the same amount of money, what difference does it make who served the ads?