All this shows it that Google doesn't know how to solve its spam issues algorithmically, and that it is resorting to collecting info from morons who report links that they have bought, etc in the past.
In turn Google has sites flagged, and I assume that they'll find a way to account number of flags into the value of a link in the algo, or something along those lines.
It's a really simple way for them to identify the most commonly spammed link sources in a rapid fashion.
All that it means to SEO'ers is that more than ever before it's important to not be doing what the many are doing. Not to be spamming the properties the many are spamming, and not to be using the link building techniques the many are using in general.