It's close-minded to think that a couple of updates spell the end of SEO, but infinitely more close-minded to think that Google will never "win". Unfortunately guerrilla is all too correct about Google doing an awesome job fighting webspam, and I think they're improving exponentially (and will continue to do so). Why? Because thing like their processing power, accumulated data/statistics and storage are also increasing exponentially. They will be able to collect more data and investigate more patterns on what's natural that they simply didn't have the processing power to do just a few years ago. Stuff that you won't be able to fake without an increasingly ridiculous amount of resources.
Simply put, the cost of doing BH SEO that really looks natural to Google is going to continue to become exponentially more expensive.
Wouldn't it follow that if Google can get exponentially more resources per dollar as time goes on, so can the spammers?