So the update is now fully in action:
Sometimes it can take a few days for an update to fully rollout across all Google’s various data centers, which in turn means impacting all its search results. In this case, the rollout is complete. Google confirms that Penguin is fully live.
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My advice to those who were hit is start taking the less is more approach. Get high PR links through either guest posting or a quality private network, build relevant web 2.0's that will take the brunt of your link building. Buffer sites are working better then ever. The game is virtually the same but the days of hitting your money site in the face with links is either over or coming to an end. Diversify your anchor text more then you think and add your URL, domain name and generic anchor text. Google also stated penalties from this update will not be overturned by a reconsideration request. Its entirely algorithmic which means you either have to go in and remove links or start over.
Because this is an algorithmic change, Google has no plans to make manual exceptions. Webmasters cannot ask for reconsideration of their site, but we’re happy to hear feedback about the change on our webmaster forum.
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In my opinion this was just a strict penalty update, rolling through and harshly penalizing sites that they feel violate their guidelines. Those who have links they can't get rid of are pretty much forever screwed. Although I think they missed the boat tremendously, there is now no doubt that negative SEO is possible and will become part of the game now. If Google is openly punishing sites for "web spam" then its only a matter of time before negative SEO starts becoming more and more apparent.
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