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If we're looking at Google as the Big Daddy of search engines, they are constantly trying to improve their search results to give more relevence to the general searcher. In this way, they can also ensure the relevence of the paid-for ads.
As you say, 100 links could be dodgy, 12 would be fine. No one knows id there's a cutoff, but there's no doubt that it's a combination function. ALl links and no content means a site with little relevence to a searcher, and therefore gets kicked down the results list.
If you had over 3,000 pages of content, then 100 links in a blogroll probably wouldn't ring any bells at Google HQ.
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