Wired Magazine featured a great article about Splogs - the crappy computer generated blogs that are made to attract traffic from search engines like Google. No doubt you've tripped accross these sites in the past. Expect more of these sites in the future... The article gives a great background about how these sites work (and how they make money).
Implications - Google is the world's largest search engine by a huge margin, and such sites that attempt to game its SEO ranking system are only going to become more common as time goes by. With that being said, companies need to find a healthy balance between legitimate content and SEO optimization in order to generate a steady and loyal following on their webpages. Otherwise their site will fall under the unfavorable label of sites like these.