Here's my problem with you understanding of things... maybe we merely view the meaning of words differently:

1. define "paid links" -

2. define "hurt" -

For #1 for me... "Paid Links"... any service offered where a hyperlink is the primary products or a benefit or features of some products added value "AND" a monetary payment changes hands for that service/product including any benefits or features.

e.g. almost all industry associations charge dues and provide a link for members... that suggests the link is paid,

ppi directories like yahoo charge for a review the link in association is paid for (unlike your reference Yahoo doesn't charge for traffic from their directory so it's easy to misinterpret your context,

but even a specific industry resource like a blog can charge for ad space and that can be similiar to textlinkads

what's your version of criteria to define what is and is not a "PAID LINK" [Dave suggests a paid link is "sitewide" and "unrelated" -- yours?


For #2 for me... "Hurt"... to cause damage to your current exposure to the detriment of any and all good merits or methods used... in short; what Google leans towards when they say [paraphrasing] that wee little bit a competitor can do to harm you. {there is almost nothing...} -- to me that really suggests 'if they're ranking above you - that is harm to your exposure' but as for them doing something directly to you that will influence a ranking drop - isn't what they mean...

In your suggested hurt [the way I understand your meaning] if you have volumes of solid content that supports lots of dot.gov & dot.edu links - those do not matter anymore because you have intentional, unintentional, or someone else has placed the worst of any "paid links" to you domain -- e.g. AVC noted bidding directories? To me if I'm on Page 2 and can't seem to get to page one getting 'good links'... you can bet if the wealth of SEO experience says bidding directories' negative values will overpower all other links positive values... it only makes sense to use that... Negative SEO insight [much like Googlebowling did] if for no better reason than the competitor not knowing you did and Google indifferent [according to your talk with Matt that is his suggested stance... I would be "helping the competitor" if Google doesn't detect... or is that merely deceptive dialog so I wouldn't attempt it?

These definitions IMHO cover all eventualities, any possible event or occurrence or result... of Paid or Hurt and if yours is something less... maybe that's what's important to convey to the membership.

IMHO defining "precisely" what is "paid" and what is "hurt" are the #1 & #2 reasons this remains unresolved.