MUST READ: Bill Hartzer weighs in with Guest Blogging is Not Dead

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http://www.billhartzer.com/pages/guest-blogging-is-not-dead/

If you’re hiring a cheap “writer” to “write” low quality articles and get those articles posted on low quality blogs just because you think your site will rank better, then you probably deserve to get slapped by Google. These are exactly the types of “articles” and blog posts that I’ve been trying to get removed, time and time again, in order to get a website back into Google’s “good graces” because of Google Penguin. Even though Penguin may not be all about links.

Really - read the whole thing.