Sub-domain Link farm madness Rewarded in Google SERPs

Our team has been doing very hard ethical SEO work along with PPC management for a client for almost two years now. And lately when looking at the "data recovery" industry we have been getting a bit peeved wondering just how or why in the world Google constantly allows the spammers to win for such $$$$ VERY EXPENSIVE $$$$ keywords (is this part of their profit driven model?)

For example: If you do a keyword search for "Data Recovery" a phrase that my client spends thousands on monthly and with a cost upwards of $12 - $17 per click, you will see that the top ranking websites, www.r-tt.com and www.bitmart.net both have huge sub-domains link farms supporting their rankings (see bellow).

Matter of fact the sub-domain link farming approach is so well rewarded by Google the sites who are involved in it have built supporting website networks around it (see http://www.submitdirect.net ).

Maybe I'm slow like most webmasters and I'm just NOT YET aware that subdomain link farms are just another ethical Google approved method and tactic, but if it is please let me know so I can start building a few subdomain farms for my clients ASAP.

Highly ranking for "Data Recovery" and their
supporting link farms.
http://www.r-tt.com link farm on http://directory.r-tt.com
http://www.bitmart.net link farm on http://res.bitmart.net

Keywords: Computer Support
http://www.gurus2go.com/ Link farm on http://directory.gurus2go.com/
Surprisingly these guys rank even higher than dell, apple, gateway, IBM and more for "Computer support"

To avoid abuse and to build quality trust with clients Google should regularly monitor SERP results for expensive keywords (Maybe anything above $5+).

Tell Google and complain. Link farms do work, however, we bank that Google sniffs them out and hits them hard.

I'll bet you not, because these guys, specially http://www.r-tt.com have been at the number one possition for a full year for "data recovery". And it has worked so well for them that they have built other sites around it.. You'll see that all their sites are ranking very well around this method.. I'm thinking maybe soon we should all build sub-domain farms.

This is so bad and worst than I initially thought:
This farm http://res.bitmart.net/ supports both
http://www.restorer2000.com/ and http://www.bitmart.net/

And this huge farm http://directory.r-tt.com/ supports
http://www.data-recovery-software.net/
http://www.r-undelete.com/
http://www.drive-image.com/
http://www.data-security-software.com/
http://www.data-security-software.com/
http://www.outlook-mail-recovery.com/
http://www.r-wipe.com/
http://www.r-firewall.com/
http://www.word-recovery.net/
http://www.excel-recovery.net/

Yah, we have the same problem in the casino industry with 888.com making use of unethical spammy ways of obtaining backlinks and some massive blackhat seo... However when we reported the scraper pages at Google they did track them down and removed them, the problem is just that 888.com has done this in such a way that it cannot be traced back to them in any way, so leaving Google and us in a peckle prooving that they are actually behind it... sigh

Anyway, back to r-tt.com!
All these sites are hosted on the same server and are exact copies of one another. Ownership of these domains are also the same. So if you report this to Google, I am pretty sure that these sites will become a tiny part of history.