I think you talk about current SEO well. Good content and links to that content are still state of the art.
I got a lot out of thinking about the computational / human-bandwidth asymmetry of Google vs content creators.
But have you considered how the fear of being Sandboxed plays into things?
My first thought was that it improved value of the proxy somewhat by making people who know the proxy will change over time be less cavalier. Most people engaging in serious SEO have lucrative websites. You have to be very risk-seeking to go after those small marginal gains at the risk of losing all your cash flow permanently. There aren’t that many large players that it gets driven down to a Nash Equilibrium quicker than Google’s algorithms can change.
But the more I think about it, the fear of being penalized also tends to make legitimate content producers even more concerned that doing ANY SEO is bad. That may make things doubly-worse.
It’s impossible to not do SEO. Every site is optimized for something.
For instance, lesswrong.com is optimized for:
vote
points
permalink
children
password
Think about that next time you lament that lesswrong is overwhelmingly less popular than other sites with clearly inferior content.
Thanks for providing that image. This is a very powerful effect.
For instance, I have to focus on it very hard to temporarily not see it.
Can anyone NOT see this effect easily? Or is it fully universal?