If you purchase site wide text link ads on a site that is closely related to the industry that you website is about, is there any possibility of Google penalizing your site? These would all be one way links coming in to my site and even Google must realize that people have a right in this country to advertise. They do it with Adwords. So again, is there anyway your site could get penalized by God, er excuse me Google or would it just be a case of diminishing returns on the extra pages linking back to my site? Also, these extra links would help with my sites Google PageRank, yes? Just wouldn't help that much with improving in the SERPS I guess.
Well a home page link on a PR 5(+) site is never bad probably, since a site with a PR can't be a site blacklisted by Google. But most sites don't have such a good PR on their sub-pages except some very good ranked pages. So I think it won't affect you at all or only minimal if you have 200 links on sub-pages except they have a very high PR like the homepage.
In my experience you don't get penalized, but, I don't feel the links have as much weight as one might expect.