Chin up to the folks who got hit. I feel your pain - and unlike a Thai Ladyboy kicking you in the balls, it's not a good pain.
I don't think Google can be beaten. In fact, I'd advise not to even try. You find a trick now, 12 months down the line you're getting burned by it. Natural link-building is the only way to go, IMO, and not simulated natural link building. I'd concentrate on great content and Google-advised onsite seo. Make worthwhile sites. Dabble in big authority sites (which take a lot of time to rank) and authority sites in small niches (easier and quicker to rank). As someone mentioned, dabble in media buying. As far as content goes, the old idiom "content is king" should not be interpreted as merely regularly updated content with a sensible flowering of relevant keywords, but text, video, and picture content that generates social interest (link bate). I could go on, but I'm even boring myself.