Are Directories On Their Way Out?

Noted spammer DaveN asks an interesting question in Did Google just target Directories at SEW Forums:I have been collecting quite a bit of data just recently and noticed
that some WH sites got canned the only thing I can find is a large % of
their IBL's are from directories.. is this the end of the road for
smaller directories ..


DaveN
DaveN is well known for being 'in the know', so if he asks a question like this it is not to be ignored. Marcia's reply gives us link builders some more food for thought:You know, if we look back at the first post, what Dave was saying is
not related to the directories themselves, but that sites with a large
% of their links from directories took a hit.


I think the engines probably have more serious challenges than the slew
of little directories out there - but the issue is whether those types
of links, especially if they comprise the majority or IBLs to newer
sites that aren't established, in great numbers and accrued quickly,
really have any value as far as algorithmic link analysis is concerned.
Do they represent genuine links that reflect relevancy or importance,
as would a link from a page from a related, on-topic site?
My .02: I think Google may be nuking low quality directories with tons of spammy sites listed, so a listing in those types of directories may not have much value going forward. From a relevancy perspective however a listing in a quality directory such as GoGuides probably will help a site in the SERPs, since that directory actually makes an honest attempt to categorize quality sites and rejects many low quality sites, and as such who it links out to is actually useful data for Google.

In any case, obtaining 100 directory links is no longer a short and easy route to high rankings. That said, when I'm trying to get a new site established I will still be submitting to my shortlist of HQ directories.