While that theory is sound (when focused on a single page, when the intent is to deliver utility content to a Google user) using old school SEO techniques on especially a large site spread out across many pages seems to amplify site quality problems, after recent algorithm changes, and so this type of optimisation without keeping an eye on overall site quality is self-defeating in the long run.
Another example when the “nofollow" attribute can come handy are widget links. If you are using a third party's widget to enrich the experience of your site and engage users, check if it contains any links that you did not intend to place on your site along with the widget. Some widgets may add links to your site which are not your editorial choice and contain anchor text that you as a webmaster may not control. If removing such unwanted links from the widget is not possible, you can always disable them with “nofollow" attribute. If you create a widget for functionality or content that you provide, make sure to include the nofollow on links in the default code snippet.
When I think ‘Google-friendly’ these days – I think a website Google will rank top, if popular and accessible enough, and won’t drop like a f*&^ing stone for no apparent reason one day, even though I followed the Google SEO starter guide to the letter….. just because Google has found something it doesn’t like – or has classified my site as undesirable one day.
OBSERVATION – You can have the content and the links – but if your site falls short on even a single user satisfaction signal (even if it is picked up by the algorithm, and not a human reviewer) then your rankings for particular terms could collapse – OR – rankings can be held back – IF Google thinks your organisation, with its resources, or ‘reputation, should be delivering a better user experience to users.
Critics will point out the higher the cost of expert SEO, the more cost-effective Adwords becomes, but Adwords will only get more expensive, too. At some point, if you want to compete online, your going to HAVE to build a quality website, with a unique offering to satisfy returning visitors – the sooner you start, the sooner you’ll start to see results.
A poor 404 page and user interaction with it, can only lead to a ‘poor user experience’ signal at Google’s end, for a number of reasons. I will highlight a poor 404 page in my audits and actually programmatically look for signs of this issue when I scan a site. I don’t know if Google looks at your site that way to rate it e.g. algorithmically determines if you have a good 404 page – or if it is a UX factor, something to be taken into consideration further down the line – or purely to get you thinking about 404 pages (in general) to help prevent Google wasting resources indexing crud pages and presenting poor results to searchers. I think rather that any rating would be a second order scoring including data from user activity on the SERPs – stuff we as SEO can’t see.
Ever heard of Maslow's hierarchy of needs? It's a theory of psychology that prioritizes the most fundamental human needs (like air, water, and physical safety) over more advanced needs (like esteem and social belonging). The theory is that you can't achieve the needs at the top without ensuring the more fundamental needs are met first. Love doesn't matter if you don't have food.