From the article:
If your telling the client your doing high quality link
building, then buying the cheapest package you can from a
link seller, that’s fraud and in todays world, you can
cause serious damage.
The mom and pop store that got hit... It is a shame. But: This mom and pop store certainly has their own responsibility. Especially if they rely on Google to keep their business afloat. They are webmasters, and as such should take note of the webmaster guidelines [1]. If they want to outsource being a webmaster, the webmaster they hire should do the SEO hiring and guideline compliance. Having an online business is more than just putting up a website.
The webmaster guidelines are fairly clear on these matters:
Any links intended to manipulate a site's ranking in
Google search results may be considered part of a link
scheme.
Ultimately, you are responsible for the actions of any
companies you hire, so it's best to be sure you know
exactly how they intend to "help" you.
Yes, to me, this means every "high quality" link building program is suspect from the very start. Getting a high quality backlink from CNN or from 100 low-quality blog sites doesn't change the manipulative nature of these (bought) links. This makes the difference between low-quality and high-quality link building moot.
(Google) search is not a black box most make it out to be. SEO is not magic. Make a site accessible and search bots have no problem crawling and indexing your site. Create quality content. Read the webmaster guidelines. Google wants your content to rank on its own merits. Align yourself: simply stop buying link schemes, start writing quality content, and EARN those links. Optimize websites for users (of which searchbots are just a subset). Try inbound marketing and website optimization.
[1] http://support.google.com/webmasters/bin/answer.py?hl=en&...
P.S. I am sick of SEO scumbags too. I am also sick of the blind SEO hate on a start-up site (start-ups often need SEO, yet a lot lack it). Didn't patio11 used to give actionable, and much appreciated advice on these matters? Do we really want to eat the sour grapes from someone banned by Adwords or Google ("Because Google targetted them, because their competitor set them up, because they got hit by those bloody quality updates, because they are not social enough, because they don't buy Adwords, because they don't use blackhat SEO, $insert_other_excuse_for_why_Google_is_required_to_rank_them").
P.P.S: The good SEO's I know often have their own sites they work on, or join an agency to work on big traffic sites. They are not using a cold-call phone team to get their clients, or stay busy optimizing mom and pop stores. This may skew the experiences you have with SEO's in general.