depends. Its good if you're on good high PR domains that aren't mass article directories with tons of outbound links, or ones that charge per post. No ezine and those kinds of places., etc.,
Link exchange is good but it's depend on site quality. If irrelevant links are already added on both site and out bond link is high then nit useful for site.
I have several link exchange and they work fine for me. It's just about the quality of those links and if they are withing your niche. That's what Google is looking into...
3 way link exchange is safer but its not something I bother to do now. Funnily enough though when I originally joined blackhatworld link exchanges was pretty much what I considered SEO to be - that was the limit of my knowledge
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