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Matt Cutts specifically said that directories are a viable service. If you run your directory with integrity and only list quality sites then you are fine. If you accept any link then you may have problems.
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I cant see why Google would achieve by killing the directory industry or the back links webmasters get by submitting their sites to these directores. Free directories dont make much sense either. Directories need a value like any other site and I dont think Google is going to do anything more than pop the PR bubble which has got out of hand