I have a client where 95%+ of their backlinks are from low-quality directories, articles, and automated link-exchanges. They built all of these before I came on board. This has caused long-term damage to their backlink profile and the rankings are not better because of the time/money spent. Their quantity of links is high. Quality LOW. Not only am I building high-quality, legit links to the site, but I've been actively trying to remove some of low-quality links they had previously obtained.
I work with another site that is newer, music related. We do NOT have a high "quantity" of links coming in, but they are all extremely natural and relevant with lots of branded anchor text. We have pages with 25 domains linking in and we're outranking other pages (for very competitive terms) that have 10 times that. We've never done any automated link-building of any kind.
So for me personally and the things I've witnessed, it is a complete waste of time and money to be going for low-quality links.
And when I say "low-quality", I don't mean a low Page Authority or a Google PageRank of zero or only a handful of backlinks pointing in. I'm referring to web pages that have...
SPAM!!
- links that are easy to obtain
- links out to sites having anything to do with sofware stuff, web design, computer whatever, directories, loans, ppc, anything with "ads" in it, employment sites, insurance sites, etc etc
- backlinks based on automated services
But I have to say, if you do go this route, make sure you get plenty of branded anchor text, it will help you in the long run.
This is just my opinion. There are lots of people using automated services. Maybe an SEOmoz member can chime in with a recent success story regarding automated article submission?