Jeff,
There is one thing I will agree with your friend on and that is how many self proclaimed marketers ruin websites by spamming them left and right. As soon as something popular comes out there you go, it is over-run by wannabe marketers that want to use it for nothing more than spamming their links.
This is one main reason why many do not like marketers and the bad part of it is because of those that do spam these sites, the entire industry suffers because then all of a sudden all marketers are spammers in the eyes of the consumers.
As for PR and Do Follow / No Follow ... None of this means anything at all. I do not understand why so many still pass on this bad advice about Do Follow and No Follow when it has been proven time and time again that these tags mean nothing at all...
Go make a post on any of the following sites and you will see they get indexed and if you actually bookmark the post you will see increased rankings.
http://www.digg.com http://www.clipmarks.com http://www.articlesbase.com Now google does not like my site (it is indexed but with no title or description) because it is obvious that I have pushed hard against their sidewiki with
http://www.blocksidewiki.com If we do a search for
SideWiki Blockers you will see ClipMarks listed #1 (at the time of this post) and it has been #1 ever since I posted it. The #1 spot is my bookmark. Mind you clipmarks is no follow but that does not matter at all because I still get traffic because my bookmark is there. My traffic stats shows direct traffic due to that link being in #1 spot.
Normally clipmarks would just help raise my listing but as I said google does not like my site and that is fine... I have no problem with google not indexing my site properly because there are other ways around that. If you will notice on that same search my article on articlesbase also shows up and I have my link on 2 or 3 of the sites that show in the same search results.
So as you see I still drive traffic and it does not matter if the link is no follow or not... This is just looking at google, remember there are many more search engines besides google and those links do matter to yahoo, excite, altavista, and etc. because these search engines do not care about Do Follow or No Follow tags.
As you have already seen ArticleProductions.com can and does get authors top listings and it is a PR1 ... So that blows the entire PR thing out the window as many articles on my site outrank EZA which is supposed to be like a PR6.
Bottom line here is - ignore any advice about PR, Do Follow and No Follow because the facts are they mean nothing. You should be getting yourself listed anyplace you can and not run your business around google's way of doing things. Many make this huge mistake, if you follow just google and market your sites according to what google likes then what happens when google changes ?? All your marketing goes out the window when they decide to change things around.
As far as the backlinks fizzle out after a bit, well this is not 100% true either... This depends greatly upon you and the reason why is because your links will stay longer if you continue to build backlinks and the web 2.0 sites you are dealing with, you actually login and participate and continue to add valued content.
The reason why many marketers will say these links fizzle is because they will use automatic means to create an account and post to a site and never login and participate.
Give you an example here:
Let's say you own a website such as faves.com and you have 100,000 members, well that great! Now let's say that 75,000 use automative means to post links to the site and another 10,000 are dead members.
Now this looks good because your site has links which means content - But since these 75,000 people never login and use some automative means to post it will hurt your site in the search engines. The reason why is because the spiders from the search engines follow links for "groups" "friends" and etc. but they see very little content and over a several months period that content does not grow and thus the search engines devalue that site.
Thus after awhile those links that are indexed start to slowly fizzle out in the search engines because there is no new and fresh content on many parts of the site because very few actually login that site and "participate".
This is why I always push so hard for people to take part in the communities they join, do not just post your links and run to the next site. This only hurts you and the website you are posting on.
I know this is probably more information than what you asked for but hey I was on a roll ...
James