The blogroll is immaterial, in and of itself. But if you're linking to someone that is involved in a link scheme, link wheel you are included in that mix.

What you link to can harm you.

In fact, just because Google email you today - the offense could have been there for year.

Either way makes no difference to me... Google has more info than any of us.

That said, prove me wrong... remove all external links or nofollow them all should have a positive effect.

The subdomain I pointed out is banned and that means you could be next.