Is google SEO broken?

This is common knowledge to pretty much any blogger, but has anyone else noticed how inherently broken Google's SEO methods are? It seems that the Blackhat SEO is winning out with google, and it's not just the small firms that are looking to get a boost. JCPenny and Overstock.com were demoted and penalized by google for fake traffic to artifically boost their rankings. Seems that both retail giants had paid a company to generate the traffic for them to boost their pagerank. Capitol One credit cards also participated in the anarchy by tagteaming with an online car dealership to artificially raise their pagerank as well.

Does business have no morals anymore? Is it just free game in the wild wild internet now? Or is Google going to actually begin cracking down on shady SEO practices? What do you think?

Are black hat SEO specialists getting better at outsmarting Google? And is Google Local Search particularly susceptible to gaming? 

Earlier this year, JC Penny and Overstock.com had to be manually demoted by Google because they were paying for inbound links to artificially inflate their rankings.

Last month a Chinese start-up that uses illicit SEO tactics to outrank a number of major consumer brands for keywords like “summer dresses” secured a $15 million dollar investment from Sequoia Capital.

Source:
http://ht.ly/5PQbl