The entire industry is talking about what google have done over the last few days, they dropped pagerank for some of the really big names sites. Everybody is surmising that this is as a result of paid links and I tend to agree.

However I don't see this as a bad thing for the SEO community at all and possibly not a bad thing for these sites. I genuinely think that the SEO community should be thanking google for creating even more FUD around SEO.

For the sites that got smacked:

Every one of these sites has probably gotten more links and traffic in the last couple of days than they have for a long time if ever.

Everyone is linking to these sites with genuine links and we are all going around checking them to make sure it true, I ended up listening to this problogger post when I was checking it out, quite a good post that I would have missed.

The real issue will be if the traffic to these sites drops in line with the PR drop. I have not linked to them here as some of them have asked not to be linked, not the best move in my mind but I respect there request.

For the industry:

It will take the industry some time to get around some of the minor irritations this brings but anyone worth hiring knew it was coming and had tested and found alternate routes.

I have avoided direct paid links for all my sites for at least a year now and I suspect most of the good SEO's have as well. A lot of workable solutions are still available to get around this.

Its going to cost more:

I am guessing that a lot of sites are going to get there end of month SEO report early from there SEO consultants. Its going to include something about what has happened and what the company needs to do to change there methods in order to combat this change.

So in short all these companies that had previously being paying SEO's to go and get them paid links now have to go and pay the same SEO's to do something new.

Obviously this may turn out to be more expensive as they will have to put there brain in gear.

More Customers:

All the people who had not hired an SEO as they had figured out that they could pay for links now will end up hiring an SEO. As a result of either not knowing how to deal with the issue or knowing how to deal with the issue and knowing that it takes a lot more time and effort, so they are better off hiring an SEO consultant to do it for them.

People whom had never hired an SEO will see all the chaos and probably run around looking to find SEO experts who can make sure they dont get hurt if google does something else.

Raising the bar:

Loads of so called SEO consultants were charging for doing little other than buying paid links. They have spent little or no time learning and testing to see what else works. This change will hopefully raise the bar and encourage this people to make an effort to come up with real knowledge and real alternatives. 

Raising the barrier to entry in any industry inevitably improves overall quality and skills, I think that this will have a positive effect on the overall industry and force people to improve there skills and knowledge. 

Its never good for an industry to have a low barrier to entry if that industry is portraying itself as based on expert knowledge and necessity is the mother of invention.

My 2c:

I don't agree with what google have done and think they have completely lost the plot, they are in a very dangerous position and weakening themselves with stupid moves like this.  They are a commercial corporation who are showing the weaknesses of this type of structure and I think that Yahoo and MS are licking there lips when the see these types of idiotic moves.