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JohnW
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“Banning” and “penalties” imply human intervention by Google in search results.

I believe G achieves much of these perceived consequences through the natural implementation of its ranking algorithm.

As to blackhat link building schemes, it is my opinion (not fact) that a website can be hurt by the links to it and their rate of attribution.

That said, I’m just as sure that G is very quickly awake to every new, major link building scam. You have a $33 billion company and the resources it can throw at these peanuts with all their blackhat schemes.

I recommend a longer term view of SEO results, not short term. You will see (fact not opinion) far more dramatic changes in SERPS when Google implements a major algorithm change like Panda than the isolated impact of a program like Xrummer.

Regs,
JohnW