The whole 'linkwheel is dead' mantra is an example of the perfect being needlessly made the enemy of the good. Linkwheels were and are a good, fast and dirty, and most of all simple system for building backlinks to a target site fast. Repeat, it was never MEANT to be perfect, just a good startup way to slap a backlink SEO framework together.
Link up six or so properties to a site and (crosslink) to each other, leaving just the last crosslink open, and that was all that was necessary to at last set up a SIMPLE, but effective backweb foundation for a money site. The open spoke or open linkwheel solves the footprint problem, not perfectly, but sufficiently for purposes of supporting a set of small sites. It's still an excellent way to manage to throw some shorthand SEO around hundreds of minsites, if you have a farm of money sites to feed a traffic funnel to, without having to be an SEO expert to set up or figure out.
Compare that SIMPLICITY to the diagram shown above. How many money sites will you be constructing that monster around? The same unwielding thing happened to the linkwheel concept itself---in came the perfectionist LW gurus, with their "I have the best Google-defeating backlink solution," and back came the monstrously complex backlink structures. Notice how ALL those solutions are so complicated as to eliminate simplicity and speed in creating a basic backweb for your sites? Don't they all beg you to say "gee, I better just work on one or two sites, and even then, probably outsource this to link experts."
Linkwheels brought us independence from the backlink gurus, and with their over-absorption with staying ahead of Google. I have nothing against thorough linking systems, but frown on how they are promoted to eclipse use of the simpler remedy that was and is working for minisite farms, and easy enough for most IMers to implement without help. Let both live and let live.