As I've said elsewhere, I feel that submitting to directories is still worthwhile (full disclosure: I run a directory).
Otherwise why would Google bother to penalize directories for selling links?
The fact that they have to manually punish directories employed in this practice should indicate that directory
links must carry weight in Google's algorithm. Google likes links surrounded by similar links, and that’s the essence
of what a page in a web directory is–it’s just a collection of links surrounded by similarly-themed links.
In that sense, then, I still believe it to be a worthwhile practice.
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