I agree with what Rand Fishkin says in this whiteboard Friday video with one major concern or warning. Google is not very good at enforcing their own guidelines and Google makes many mistakes. Google is sometimes stupidly stubborn and will refuse to correct their own defects and mistakes. Furthermore I give proof of this in other articles I have written.
So in general this is good SEO link building advice to benefit you via merit based link building, however you cannot trust Google to fairly apply their own webmaster guidelines.
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