[garcia]

Multiple possible answers here.

My biggest issue with directories is that you very quickly end up on the archive page of the directory but their link is still on your front page. So any advantage you get from a quick rush of traffic is short lived. It very quickly becomes a deep (and buried) backlink that you have traded a front page link for.

Some directories are good though. Pinging directories (those that ping your blog [or you ping them] with each new post) are usually ok. You are giving up a front page link but everytime you post you get a new link on their front page. True--you still get to the archives quickly but at least you are getting several backlinks for your front page link and everynew post is on their front page for a bit.

And some directories rank your blog in the listing depending on how many hits you send them. Depending on the quality of traffic that you have to begin with this could be good or bad.

I don't know if directory links so much hurt your blog as help the directory unequally. But then the directories do get a load of traffic.

The main question has to be how many outbound links you have all together (including directories) to sitesthat you do not own, control, or have an affiliation with. This is called traffic leak. Ask anyone who has done TGPs. It is very easy to link trade yourself right out of business.

Just my opinion.