Hi Nightwing
I suspect you'll likely get several differing views to this question as it's a highly topical and debatable area of SEO for which there is no hard & fast right or wrong answer, it's down to ones' own views, beliefs, ethics and experience.
My view is:
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If providing a link out will likely benefit visitors (which means it's a valuable, relevant, value-adding link) then by all means link out. It adds to the user experience if they have good quality relevant links to follow to other websites.
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If the link is purely there as a part of a link exchange and/or purely for SEO reasons (i.e. visitors won't benefit from visiting the site being linked to) then don't link out to that site.
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If the link out will benefit visitors from following it and just so happens to be a part of a focused & select link exchange, then go ahead (always with careful consideration) as it benefits the visitor and helps to create a positive user experience.
So in summary; link exchanges can be beneficial to a website owner and to the visitors, however only when certain conditions are met. If those conditions are met, then go for it. If not, then don't partake.
Hope that helps,
Regards
Simon
