Submitting to Directories - What Happened to Directories?
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Directories used to be an easy and fast way to get Google rankings, so Google had to diffuse this manipulation issue. The problem with generic directories is they might have a high page rank, but no content or real value from the user's perspective. If all a directory does is sell page rank for the sole purpose of manipulating search results, then the search engines will want to discount it.
It the past, it was pretty simple. For example, Bob the SEO dude got into SEO, and then realized he could make money from directories by charging for submission. He got directory scripts, built a database and rolled out a new directory. Then Bob ran into a problem...no one submitted.
"What's going on?" Bob thought. Then he realized that he needed page rank, so he reciprocated, did free-for-all links and bought listings. Bob got his directory's PR to 6 and started selling links for $40 apiece.
The problem with Bob's model is that his directory is built solely for PR manipulation, without any value to the end user. Obviously Google does not like those tricks; it wants to provide its searchers with real value. It's only natural that search engines want to reduce low quality directory link effects.
Many directory owners build multiple directories for nothing but SEO, which reduce their value.
Determining Quality of a Directory
A good way to determine the quality of a directory is to look at whether there are any good sites in that directory. If its listings lead mostly to low PR, low quality sites, then it's not worth bothering to submit your site to it.
Also, if most listings are empty, this means that the directory is either new or abandoned. A new directory may become good later on, so submitting to it may be worth the effort. Save the link somewhere and come back a few months later.
Check the crawl date of the index page and of a specific page in a directory. If it's over a month old, chances are the search engines don't trust it. Google also makes a lot of manual adjustments, which can hit spammy directories.
Web Directories 
