I think that directories are definitely hurting from Panda, Penguin, and just Google's latest direction in general. Even high-end diretories and niche directories are taking a hit for their lack of article-form content. I'm not so sure there's much that can be done ... Google essentially wants to serve as the go-to place to find other sites itself, so it makes sense that it's not going to send traffic to another place to find sites. Its goal is to send users to their final destination in the first place.
Dani
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