Awful. Banning a site because it turns out bad, or non-existent content is what search engines ought to be concerned with. There's still a ton of crap returned by all the engines, some of it has been there for years. High ranking websites are allowed to create pages with nothing but ads & offsite links to other sources (wikipedia etc) and rewarded with a page one keyword result simply because they have "trust" whatever that is supposed to be.
I though Google lived or died by it's algorithm a couple of years ago. Evidently times have changed. The implications for anyone trying to launch a new site are quite alarming.

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