Hit this one a bit late, but I agree, A>B recips hurt. Not just 'less advantage than A>B>C recips', but actually hurt* (when it comes to google, and let's be honest, we all much prefer good google serps than any other SE).
As for clicks on recips, sure, they do occur, but wouldn't people rather trade the few clicks (yeah I know they add up) from those, for better SERPS?
And to answer a statement from I forget who, along the lines of 'what's in it for me, the freesite submitter?', well, better SERPS for the LLs you sub to, and consequently more of that precious SE traffic.
*in my personal experience, before anyone asks for a link to my source
