Mass link building through link building software or service could be risky but it does not mean not to use those powerful tools to get higher ranking and more traffic. So you can limit the software to make it work more naturally, or/and use it to promote pages that have your own links from other websites. Here is a short article that can explain the process http://www.squidoo.com/get-more-high-pr-backlinks
I dont think that softwares have any role to play while building links. They can be used to analyze links
There may be many software's but the preferred way to build links is by manual submission not by using software's. if you are found by search engines that you gained high number of backlinks in few days you will be penalized surely
It depends on your competition if you are playing with the big dogs you need to have the tools they are using or even better tools to have the chance to win
er' you advertising you squidoo lense ?! or just promoting SENuke, ya' know we ain't dumb. just saying...