I don't feel that there is any feasible way that Google could EVER accomplish penalizing paid text links. They are FAR too similar to the way an organic linking campaign is constructed, and some of the links that are wrapped in text are quite relevant and Google knows this!
If you boil it down to the core issue here, the ONLY way that Google can interpret a purchased text link from an organic link, and I stress ONLY, would be if the USER(meaning the owner of the particular website in question) doesn't understand how text links are read. The reason that you are seeing people achieving a PR6 or PR7 within the real estate realm is definitely due to text link purchases. If Google could spot these, they would NEVER assign that type of PR. The reason you see that same person fall off after an update or two to a PR5, or whatever, is simply due to the fact that they didn't keep that link active.
Lets face it, quality PR6, PR7 and PR8 text links are in no means cheap. Almost EVERY person I've ever worked with that was smart enough to purchase text links, did so for a few months, saw their PR skyrocket, and then they assumed that paying for the link was no longer necessary. This just isn't how to approach text link advertising.
Just as I have read on this network, as well as several other blogs, people bash text link advertising all over the place. Conversely, they claim that the ONLY way to get high PR is through 'organic linking campaigns' and MAINTAINING those links throughout time. Focus on the word MAINTAINING!!!!
You have to commit yourself to keep paying for those text links for a LONG period of time, or else Google, Yahoo, MSN, etc. WILL IN FACT catch you.
It's not hard for them to scratch their heads if you get a bunch of PR7 websites to link to you for 3 months and then dissappear. This is precisely why they catch these websites! They pay attention to the dates acquired, and how long they maintain their linking relationship with your website.
I'm not saying this is an absolute, but if you look at purchased text links the same way you look at your 'organic' linking', I don't think it leaves much room for interpretation. Please let me know your thoughts, or if you think I'm out of my mind.......
