@EGOL - You are absolutely correct. Quality is always preferable to Quantity. Now, we all know that the BEST WAY to make gains in the SERPS is to stick to the straight and narrow and work hard and eventually you will obtain the results you want. However, in the real world, we are competing against huge numbers of SEO companies that all promise fast results - and deliver them - by using a variety of dark practices - and many of these companies are not getting penalised for it (and I have watched them prosper over the course of nearly 4 years using less than pure techniques.)
So as time passes I watch them continue to reap the rewards, thinking to myself 'Any minute now Google will see what they are doing and drop them off the face of the earth...' Well, I'm still waiting, and waiting, and waiting...
So what does the honest, wholesome, whitehat SEO do?
How realistic is it for an SME with say 400 inbound links and 50 facebook followers to HONESTLY outgun a competitor who has 320,000 inbound links and 3,000 fake facebook followers?
I have fought quite a number of battles for some time with clients and employers, all the time resisting the easy path in favour of the long haul, but I am getting rather worn down by it. The addage if you can't beat 'em - join 'em springs to mind.
There are certainly scenarios where a quick boost to your fan base numbers for credibility are essential - especially if part of your pitch to potential clients will be that you will be marketing product X using social networking sites (Let's say we are selling a targeted property listings site, which will also use facebook and twitter to further promote its listings) Now your potential client will want to see the audience you plan to promote their product to - BEFORE you win their business and therefore have a product to promote - so you are faced with a dilemma - spend a lengthy and non-revenue generating period while you earnestly build a following, or, spend $50 and build the numbers in a matter of days - show the customer your thousand/s of eager followers fans - win the business and THEN invest your time in gathering genuine interested followers and in turn build a number of followers who are genuinely interested in the products you promote.
There is safety in numbers at play here - for all parties - as @Dunamis said 'if I see a page that has cool stuff and is followed by thousands of people, I am more likely to follow it. I'm not as likely to become a fan of a page with 100 members even if the content looks decent. '
We can't fight human nature with the argument 'Hey, I might only have a few followers, but one of them is the Pope!' Numbers are a very quick indicator of Credibility and we are manipulated by the power of numbers dozens of times a day and this will not change!