If you haven’t already, take a look at one of Matt’s recent posts. He is asking for people to report sites that are selling links. This is a huge mistake and cannot possibly be implemented reliably.
First, there is really no way to tell if the link was paid for, or exchanged, or you owner just likes the site linking to it.
Second, if there is a penalty for selling links, your competitors are going to be reporting every single link you put on your page just to piss you off and get you kicked down the google SERP.
Third, what about services like Text-Link-Ads? What will happen to them and all the people who rely on them for income?
And lastly, who the fuck does google think they are? It’s my blog, and I can post and sell whatever portion of it I want. They had better watch themselves and what they stick their noses in. They have gotten fat off of these sites, and now they want to make sure that the only way they can sell advertising is through them. Whatever happened to ‘Do No Evil’?