Google & Cloaking - Industry Notables Speak Out

Thread Title:
what penalties does google have and "sentence"?
Thread Description:

Brett Tabke of webmasterworld speaks out on how Google view cloaking, it's unclear where he got this information:

Google has no problem with quality ontopic cloaking. It is only when the content of the cloaked page is radically different from the content of the browser page.

Danny Sullivan of search engine watch also spoke about cloaking recently with regard to Googles "double standards" for publishers:

In summary, Google needs to change its cloaking definition to acknowledge that approved cloaking is allowed -- and it definitely needs to move forward with providing better support to ALL web site owners, rather than just some of them.

And previous to all of the above Ralph Teigtmeir of fantomaster, arguably the webs foremost cloaking company commented on the chances of getting busted whilst cloaking:

detecting cloaking reliably typically requires
quite a bit of manpower. Sure you can pre-filter cloaking indicators
automatically, e. g. by accessing and saving the site first as a search engine
spider and following this visit up via some unknown IP not identified as a
spider. However, simply comparing the content automatically isn't reliable:
there's so many sites out there displaying dynamic content, it can be a real
nightmare discerning what is actually legit by the SEs' standards and what
isn't. Moreover, there's browser specific content delivery, printer-friendly
pages, content delivery management systems in general, etc. etc.
All this will incur massive overhead in the personnel department and, hence,
will blow up costs. Considering that you'd have to cover billions of pages to
weed out all cloakers, it only stands to reason that the search engines, while
certainly not endorsing the practice, prefer to view cloaked sites as just so
much tolerable white noise in their search results.

So while the risk of detection is indeed real, to all practical purposes it's more
of an academic scenario. In any case, no need to wax paranoid about it.

So, come on Google, let's hear it. Where do you stand on cloaking?