My comment "For SE traffic it's a bad model" was referring to the old way that LL's were done, with the Circle of LL's combined with the Circle of submitters. As I mentioned in my original post I think a LL could do well if it followed the guidelines for SEO in 2012.
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Too Many Links Out...People used to say 100, but all of this is speculation.
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Matt Cutts actually addressed that here:
http://www.youtube.com/watch?v=l6g5h...eature=related
Googlers still refer to Web Pages as "Articles"...that is the way that they think of a page. IMHO if a LL were done without the intent to give and receive Link Juice, then it could work quite well. Basically as a review site, written in your own words, linking to good content, it would be an Article that is keyword rich and ripe for the crawling by Googlebot.