negative SEO de-ranking your competitors, reputation repair

I was reading this case study and thought that this method would work perfectly for de-ranking your competitors (not that I would do that) and for reputation repair to de-rank sites like rip-off report...

http://www.blackhatworld.com/blackha...oney-site.html

I would like to see if I am thinking straight and if anyone else agrees or has used blasting penguin unfriendly links to a site to get it de-ranked and can verify my theories.