Can it be true that the search engine that runs everything, makes the rules, delegates that keyword spamming is not good, created the nofollow tag...is breaking their own rules?

Yes this is true...Google Base, Google's product search, seems to favor sites that keyword spam the product descriptions. Since the only advice on the web for Google Base says add more content, why not? Let's add more content to the description, which has a large amount of space to input descriptive text.

EXAMPLE)
Do a Google Product Search for the term “dcr-trv18 adapter”. At the top right will be a place where you can sort the listings. Sort them by "Price: Low to High". From Page 21 to 25 nearly all the results are from the same vendor, LostShopping. They have a little under 80 listings showing up for that result. This is an unfair advantage to companies that do not currently know about this tip.

Example from search results page 21
Example from search results page 22
Example from search results page 23
Example from search results page 24
Example from search results page 25

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Example Landing Page 1
Example Landing Page 2

They make similar pages for every compatible model and part number to dominate Google base search results.

The descriptions are repetitive and use all the keywords. Keyword spamming???

Why would they allow this? It makes no sense and is likely to be corrected soon, but in the meantime you might want to take advantage and start using this method to dominate the Google Base product search results. Please let's focus more on keyword research, rather than keyword spamming.
It has taken quite a while, but finally the two search giants, Yahoo and Microsoft are partnering together in hopes of creating a mega search engine superior to that of the current market leader, Google. This is a 10 year deal in which Microsoft will have access to Yahoo search technologies, to integrate into their current search engine. The companies will use Bing as the main search engine algorithm to display search results. The paid advertising will also be merged, yet the companies will remain separate entities.

Now that the deal is done, here's what Steve Ballmer has to say about the impact of it, "Through this agreement with Yahoo!, we will create more innovation in search, better value for advertisers and real consumer choice in a market currently dominated by a single company," said Ballmer. "Success in search requires both innovation and scale. With our new Bing search platform, we’ve created breakthrough innovation and features. This agreement with Yahoo! will provide the scale we need to deliver even more rapid advances in relevancy and usefulness. Microsoft and Yahoo! know there’s so much more that search could be. This agreement gives us the scale and resources to create the future of search."

Microsoft will compensate Yahoo by offering a revenue sharing agreement. This is a tricky deal that may cause some havoc to the Google team. Yahoo and Microsoft believe that this partnership will bring in an additional $275 million dollars to each company.

This morning tens of thousands of ecommerce retailers awoke to see that their credit card processing company (authorize.net) went down due to a fire in the Seattle office.

Unfortunately, going down means no credit cards can be processed by many merchants who rely on authorize.net for their sales. This shows you that you should always have a back-up plan ready to go, such as PayPal or Google Checkout. This can save you thousands of dollars in headaches.

I personally witnessed a company lose hundreds of orders and receive tons of phone calls from irate customers vowing to never shop at this ecommerce site again.

When will the site be back up? It’s been 10 hours so far and still no word of any expected recovery time. Hopefully, this will be resolved and everyone can process the orders they have been hand writing down for the past ten hours.

Hopefully someone in the internet marketing department can resolve this problem in a timely manner.