Why Does Google Hate Widgetbucks?

I got a email today from someone saying they thought widgetbucks was responsible for their site dropping in Google for PageRank. I dont want to disclose who this is but lets just say its a pretty well known blogger. When I asked them why they thought it was widgetbucks that caused the drop in pagerank they said that widgetbucks was banned in Google for there own term.

I looked up widgetbucks and it does not look that they have been banned but they definitely are being penalized. Not even on the first page for their own name.

To SEO people out their do you think its just bad SEO or could there link policy be playing a part in the penalty?

Here is a word for word copy from there terms and conditions:

Back-links placed by Mpire in the HTML code must not be removed.

Now from what I have seen there widget is flash but I guess if they were using your site to embed html links (as they asy in their policy…. that would piss Google off eh?