This week he has softened his stance stating that 'there are still many good reasons to do some guest blogging'.
Cutts listed exposure, branding, increased reach, community, etc as examples of legitimate [read:forking good] guest blogging. He stopped short about followed vs nofollowed links. One can only assume that links that are nofollowed are ok and those who follow risk some sort of Google penalty to both the linker and linkee.
'there are still many good reasons to do some guest blogging'- Matt Cutts
Also mentioned were multi-author blogs such as Boing Boing that featured high quality content and can be 'compelling, wonderful, and useful.' So high quality multi author blogs are highly indexable.
What is interesting is that Cutts said he would "recommend 'skepticism' (or at least caution) when someone reaches out and offers you a guest blog article." What he didn't say was not to allow guest bloggers.
Matt Cutts' blog post " The decay and fall of guest blogging for SEO was at first a declaration of war on spammy guest bloggers, then a bit of a backstep.
Image Source: http://www.etsy.com/market/stamped_forks
Why the softening position? Are there some forking good guest blogging?
Maybe the guest blog community was revolting a bit against such a blanket declaration on their efforts. Here are a few posts supporting guest blogging.
Elisa Gabbert posted on her blog, 3 Reasons Guest Blogging Isn't as Dead as Matt Cutts Says It Is
Jean Spencer posted, Guest Blogging is Dead? Not so fast...
Raquel Royers asks, Matt Cutts Declares Guest Blogging is Dead--But is it Really?
William Comcowich, editor of the Media Monitoring News wrote, Guest Blogging is Dead (Or Maybe Not)
Steve Masters of Yahoo! Small Business said Guest Blogging is not bad and is not spammy by definition.