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The more relevant the inbound links are to your site helps determine the quality of the links. If your site is about breast implants than linking to a site about German Shepherds is not relevant and is therefore not a quality link. It is easy to get a higher ranking using backlinks than it is to influence search engines with external backlinks from other sites, which is why backlinks matter so much in a search engine's algorithm. The inbound links were not counted but the outbound links were still counted which lowered the relevancy score of many websites and caused them to drop off the Google map. Google is working on a patent that will deal with the popularity of sites being linked to and how trustworthy a site is that you link to from your own website. To prepare for this now we should choose relevant sites to link with, sites that don't have an enormous amount of outbound links on a page and ones that don't practice bad SEO techniques. As you know, it is not important the number of inbound links you have but the number of quality inbound links you have is important. Using the Backlink Anchor Text Analysis Tool will help you find your backlinks and show you what text is being used to link to your site.