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The strategy works for lots of webmasters though I’m not sure how effective it would be for the more competitive keywords.

John W already mentions the need to watch the speed of the link development and the need for good followed links so I take it you are going to publish guest posts on those blogs rather than look for comment links. Using juiced up 2.0’s like that is pretty common, its a pretty effective way to leverage their high authorities.

SEO’s are now starting to treat their own blog networks and guest posts (on other blogs) as part of the inner tier along with the 2.0’s, probably a good idea as eveyone and his dog seems to be using the Squidoos and Hubpages too much!

Be careful with linking the inner tier together as a linkwheel though – I have experimented with that sort of thing for fun and seen initial successes followed soon after by massive de-ranking as G devalues the backlinks! It didn’t get the test domains penalised or anything serious, just had big ranking drops which were hard to recover.

Of course all those backlinks (and their backlinks in turn) could be replaced with a few good solid ones if you had access to them – could save about 3 tons of work!