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What do you think about Over-optimization update?

Recently Google lunched a new update regarding over-optimization. What do you think guys about it? How much it will effect the search results? What the way to avoid over- optimization?
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The thought is fundamental to attempt and level the playing ground a tad bit. So each one of those individuals who have kind of been doing, for absence of a superior word, "over optimization" or "overly" doing their SEO, contrasted with the general population who are simply making awesome substance and attempting to make a phenomenal site, we need to kind of make that playing field a tiny bit more level."