I agree that buying links in the way described is black hat SEO.

Let's not blame Google for the IBL situation. The better target of blame is the guy who tries to game Google and lead searchers to a site having nothing to do with his search - or a site simply filled with Google ads on the topic of the search.

Please remember that one of Google's main aims is to keep the natural search listings worthwhile.

The people who have been among the worst abusers in the various forums with inapplicable links have been the viagra guys and various other pharmaceuticals. Often they use misleading link text which does not help Google or anyone searching on Google.

Let's be practical. Yes, we all want our sites to be found, and if we're practicing white hat SEO, we're playing by Google's rules. Helping Google to maintain an excellent search is in our best interests, because we need the #1 search engine. Plus if Google catches anyone using black hat techniques, the offending site gets dropped.