Their Link page decached... OK to remove their link now?

Well, since Google is decaching in big numbers sites it feels are trying to develop artificial link exchanges I wanted to see what the "etiquette" here is.

I have found some of my "link partners" pages, where my link resides are being decached and even dropped as a backlink in both Yahoo and Google. Usually the first page of their "resources" is cached, but the others, even if they show Toolbar PR are not. I find this alot on pages that are like this:

Resources.html / Resources2.html / Resources3.html, etc...

To this point I have just asked those specific partners to move my link to a page that is cached. If they cannot I have just let it go at this point, but why should I provide a directory style that is indexed and cached daily and even optimized for my partners if they provide lower end sites that bring me nothing. I know I know dont link with these people, im not any longer and have gone up in the serps, but what I mean is for old partners. In fact I am now skipping all exchanges that are number based.

What does everyone think? Is it ok for me to remove their link because they have not developed their site correctly? I know I am getting penalized for linking to some of these sites...

If they pass you targeted traffic then keep them.

If they are just a waste of space then kick them to the kerb.
They would more than likely do it to you if it was the reverse.

I go through my directory once in a blue moon and often fine that certain webmaster will stop linking to me. About once every 3-6 month, I do Google sitesearch on the my link partner, if it's not index, I usually return the favor by giving them redirect link.

One thing that I have done is to develop special link program that allows me to monitor a lot of different aspects of my link partners and manage my link program more efficiently. I moved up conversion rate by about 30% so I am pretty happy about that, but I made some bad choices of people I exchanged with, future exchanges I am being very stringent.

Thanks for the responses. Some people got one of their stronger backlinks axed last night ;)