Google Bombs Removed by Separate Algorithm
Matt Cutts confirmed in comments at Search Engine Land exactly what I’ve suspected, that Google defuses Google bombs by using specific code designed to do so.
He said, “it’s not a manual change; it’s just a fresh push of our Googlebomb data. The algorithm doesn’t run every day.” Google’s earlier statements seemed to imply that the code Google Search algorithm had been “improved” to the point that Google bombs would be impossible, now we know that is not true, that Google bombs are very possible, but a process that Google runs periodically removes Google bombs, constantly defusing new ones.
Glad that was cleared up.