If Google were truly stupid, they wouldn't be a multi-billion dollar company, let alone the #1 search engine worldwide.
There's two groups of behavior Google doesn't like. You have your black hat SEO (where you can spike your ratings but you're only one or two steps ahead of Google) and your grey hat (where Google doesn't like the behavior but also can't really filter it out yet).
Paid links are a problem only if they are followed links. A nofollow paid link is, AFAIK, acceptable to Google because you're not trying to game the SEO (and every legitimate network does it that way). Paid links as an SEO strategy CAN work, but Google has proven (especially with Panda) that they have become MUCH better at finding unnatural link patterns and devaluing them. And for an SEO that's your real risk: fruitless efforts (especially if you spent money on them).