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You're clearly not penalized.
Positioning in google for a competitive term is like climbing up a sandpile- it's not stable, you are constantly slipping backwards.
The keyword spammers and the "authority" sites will almost always be able to push an ordinarily optimized site backwards. And your site isn't that optimized.
Your first effort should be to do the linking work that will improve your PR. PR still means something, even tho it's older apparant meanings have changed. However, your linking shouldn't be for PR alone, look for keyword relevant links, or traffic producing links since what you got is a TGP.
Devalueing is rampant in google anymore- there's only so many good spots to go around.
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