I do think NoFollow is more pertinent for external sites linking to your site, and not so much inner site links used for navigation.  I'd be more concerned with the amount of keywords used in the metatags.

May concern was these screwed up links would somehow impair ranking, but I guess not.  Thanks for the link.

I'm not saying I want to chase them.  I'm not about to submit emails to each of these sites, since it's obvious they don't speak English.  On the other hand, I do possess all the urls, and I would like to report them...somewhere.  This is abuse, and should be stopped.

Below is a sample link...not the word "hollister" used throughout the page..

http://web-tutor.in/content/add-your-customs-table-views?page=3

Whether is accidental or intentional, there's got to to be something I can do to get back at these jokers.

What if this is intentional?  Furthermore this problem is spread across many sites.

Just ran a link profile, and have noticed for the first time many spammy Chinese sites linking to my site with spammy keywords such as "Buy Nike" or "Get Viagra".  Making matters worse, they're linking to pages that are creating 404's.

Can anybody explain what's going on, and what I can do?

You can 301 to any place, so if it's beneficial to change the structure the site, now's the time to do it.  Beware though, when you change the structure of the website, and are placing pages in different folders, you're changing the URL, so it will affect your ranking, hopefully for the positive.   I think what you're proposing would be an improvement.

If it's the category that the items on the page fall into, probably not.  If the inserted keyword leads back to a page outside of the category, it may be a little spammy.  From what I understand, breadcrumb produces codes based on where the viewers was on the site, so if the inserted code looks like all the other dynamically produced html, I don't know how G could distinguish that, other than it doesn't fit the content on the page.