Search engines have endorsed the use of the nofollow tag to help stop the spread of blog comment spam and other problems.  Danny Sullivan's early comments about the intent of this tag are...  "When added to any link, it will serve as a flag that the link has not been explicitly approved by the site owner."  Oilman quickly saw a linkbait opportunity and tossed up his "Link Condom" site. 

I got a chuckle out of Oilman's stunt but didn't think too hard about the nofollow tag until I read an SEOChat thread in which Wander1 shows how easy they are to spot using the SearchStatus plug-in for FireFox.  (Links with the nofollow tag are highlighted in PINK).   If you read that thread and others in various forums you will see that nofollow is being used for a wide range of "purposes"......
  • heavy cross linking within your own network without looking manipulative
  • allocating signature links in forums
  • blocking spiders from your "about us", "contact", and other utility pages
  • various PR hoarding strategies
  • various PR funnelling strategies
A short 18 months ago lots of webmasters were using sneaky java script to secretly "Manage" the flow of PR through their sites.  Now they are doing the same thing with a tag that the search engines have endorsed.

I'm a bit confused after seeing all of this.  Should I condom the links within my own site?    How about the links between my site?  How about when I link to my brother's basketball site?

Weigh in on this subject and help me get a handle on how a webmaster should use these tags.  Are there any ingenious uses of these tags?  Are there any abusive uses?