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There are lots of potential scenarios that can exist and have the bad neighborhood penalty still make sense:
1) The link simply didn't get cross-indexed.
2) What you defined as a bad neighborhood didn't get picked up as such.
3) There were enough good incoming links to overcome the one negative
4) There were enough links to good sites that this one is considered an anomoly. This vs. those who make a practice out of it.
5) The page had a no-index tag on it
6) The robots file excluded the link page
Either 5 or 6 would mean that G never even saw it, but that it was put there for human eyes to get their link back.
There are others that are a little more technical as well. Plus the fact that we don't know how this all fits into Google's algorithm. There are enough good link opportunities out there, why screw around with the dark side and risk getting burned?
For myself, if I've spotted a site that I think would otherwise be okay to link to and he's linking to junk, I am most certainly not going to link to it. To me, it's just not worth the risk and I don't have the time to go back and make sure that he's playing straight and has no penalties that will then bleed to me. In those cases, they've traded a good unreciprocated link for a high risk reciprocated one.
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