Is SEO Dead after Google Penguin Update 2012?

[FRiKi]

SEO will never be completely dead, but we have to learn new stuff after every update. This latest Penguin update is lame. I know so many webmasters, some of them do blackhat, some of them do legit SEO, but I have a feeling this Penguin update is just bad. My websites are on the same positions they were before, but there are strange things going on.

I have 2 connected websites from the same niche, ranked on page 2 for very tough keyword. Didn't do any SEO work on them for almost 6 months because they will be launched in a few months. One of them has blackhat SEO made, one of them has legit SEO. Legit SEO website lost position for that keyword and is nowhere to be found, blackhat website made it on the first site although I didn't do any SEO on them for 6 months.

I fully expect website to be back in few weeks, because this version of Penguin is just bad.