Tomato, tommaato....there's different methods to skin a cat here EP-
But either you're locked up in a room where you don't ever look at BL profiles of the most challenging serps
or you simply don't understand what they are doing.
1) Site networks
2) Hacked WP and other sites
3) Parasites (edu et al)
I spend several hours a day pulling links and analyzing structures. I do get it, but it's not the only way to do it, nor likely the most cost effective way.
Now does this mean what you're doing isn't efficient? Of course not. But if you are clued in to how G NOW crawls and indexes/ranks new content/sites etc, you will notice it is getting more challenging to generate PR, and to power sites via 2.0's takes time. Sure...if you want to WAIT and be pennywise go ahead and build your massive 2.0 networks coupled with your content system. Good on you my man. Kudos.
But the big boys..call them lazy or stupid or whatever..continue to use the above mentioned strategies and own many of the toughest verts in the business.
You mentioned "go rank for auto insurance with site networks"..ok..here's a spotlight on someone I know who ranked for 'easy auto insurance' just a few months back for about 3 months..crushing progressive and geico and the other multi-BILLION dollar conglomerates..
http://www.seomoz.org/blog/how-garbage-ranks-in-the-serps-a-case-study
but hey..what do I know..
"easy auto insurance" isn't a tough term, "cash advance" isn't a tough term. I rank harder terms regularly.
http://www.majesticseo.com/reports/...www.easierautoinsurance.com&IndexDataSource=F
This site is #3, and has a whopping 144 backlinks. My bots generate 10 times this amount, and all better quality, in a day.
However, I never said I only use web 2.0s (in fact, web 2.0s aren't even 10% of the links I build to domains), nor did I say I don't use blog networks. Maintaining your own network is a different story, however, and is what is being discussed here.
Google is not "reevaluating" PR generation, in fact, it's easier than ever from what I've experienced. You also don't recognize that PR is far less important than domain authority, which is generated from links in. However, it's very easy to generate PR 3 on fresh domains.
Recently, I beat out a site, and have maintained the position 3 times as long as he did so far, who spent at a minimum $10k on paid high PR homepage links... I did this, for $100 and using my tools I've built. He did, however, only use paid links and spam links.
It took around 2-3 days worth of work on my part (though articles are added every other day). In fact, though, I do this all the time. I do this with at least 5 new sites a month right now (some are less competitive but would still be considered high competition), as I have enough content to do it and the tools are all well maintained.
Did I use my network? Yes... did I use other networks? Yes... but it wouldn't have worked at all if I didn't have my tools beforehand. I generated a structure of over 500 domains with HPR in content links and structured it to such an insane degree, before I even got into networks. The site was on the top of page 2 for the particular term before I even added high PR links from my network and others.