A little behind the times there Deepsand.
One of the algorithmic changes was in the notification software. The threshold for notification and the timing for notification were both changed a few weeks ago. In many cases the notifications that people should have gotten were never sent and people are seeing new notifications for things done 'years' ago. Tied with the new update (that is no longer being called over-optimization) this has been generating thousands of new messages to people who may have done nothing in several years and are seeing no changes in the rankings to go along with the notification.
Also, the new algo rollout (more properly called a link spam update or a quality update) is dropping sites anywhere from 20 to 200 spots in a single leap. Not one or two, thousands of sites are seeing this happen. Good, solid, clean websites.
The latest response is that 'the algo roll out is not complete - things will change over the next few weeks'. In the real world that gets you fired. In a Google centered world it gets people to switch to Bing.
You can appeal the Penguin update, but not through Google webmaster tools, searchengineland.com has a link from there page, the lack of communication from Google is the biggest red flag in my opinion. Changes to the algorithm I think are fair and just, penalizing blatant spam seems quite fair, taking a swipe out of thousand and thousands of sites without dialogue who followed middle of the road optimization techniques, yet still allowing major spammer sites to exist is pure crap.
I think this latest update poses the biggest opportunity for lawsuits with google, the real potential to drop your competitors by simply submitting them to a few hundred free directories with heavy anchor text is now right in the open, Google opened up this potential biz model and will have a hard time closing the loop on this, add to the fact they are not offering support for penguin affected sites and u are left to wonder, when some small business alliances form a class action suit or when some eager lawyer realizes the opportunities here..of course just my opinion : )