AT SXW, Googles Matt Cutts talked about an algorithm update to
target the sites which have been overly optimized. Matt called it an
..."level the playing field" between the good and the bad guys of SEO
(read quality content and over optimized content respectively).
Matt said, "What about the people optimizing really hard and
doing a lot of SEO. We don't normally pre-announce changes but there is
something we are working in the last few months and hope to release it
in the next months or few weeks. We are trying to level the playing
field a bit. All those people doing, for lack of a better word, over
optimization or overly SEO " versus those making great content and great
site. We are trying to make GoogleBot smarter, make our relevance
better, and we are also looking for those who abuse it, like too many
keywords on a page, or exchange way too many links or go well beyond
what you normally expect. We have several engineers on my team working
on this right now."
Heres the link to the audio clip of Matts statement: Listen to Matt's Interview