Randfish from SEOmoz asked them and they all seemed to agree it wasn't that big a deal for them as long is the post was relevant. That's why I always insist on a bigger write-up, rather than the 50 words minimum. The more words, the more relevant the page can get IMO. Matt Cutts did jump in and try to save G's image: I don't see how G would be able to distinguish a paid link from a review where a link wasn't required bu tthe blogger voluntarily decided to add a link or for that matter, decided to review it voluntarily altogther, like many of us do on our blogs regularly. Anyway, shocking yes, surprising from a technological/principle POV no, not really. Good news anyway.
did a payperpost thing to a big client of mine - it does look like links are starting to get really factored in after about a week...