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It is insane and there hasn't been a lot of focus on people that really were targeted with Negative SEO. In my case I survived Panda & Penguin without a hitch. Then on May 2nd (the week after Negative SEO hit the blogs), thousands of comment spam links were pointed at my site. Then on June 30th we received our first unnatural link letter and were wiped out of Google. Our reconsideration requests have contained a full explanation but have been answered with an automated response and no advice, help or resolution. So I think Negative SEO is a real killer.
It's always a problem when not only the judge, jury and executioner are the same entity but also the governing body and even the messenger. Imagine if Google was a country. Also being guilty on suspicion is not really a modern solution. In the middle ages this method it was used for witch hunts. Without democratic oversight it will get worse and worse. I advise you to read Kafka to be prepared for the future of Google.