This article goes into further detail about Matt's comments, and if you are unfamiliar with the author Vanessa Fox, she used to work for Google so I personally listen to her insight closely. She posts more of the transcript which helps to put it in better perspective.
[I][And later after talking about the positives of SEO] “Absolutely there are some people who take it too far. What we’re mindful of is when someone says, “We’re White Hat. We continue to do the right thing, and we see the Black Hats who are over optimizing or going too far, and they seem to be doing too well.” So we’ve been working on changes to try to make sure that if you are a White Hat or if you’ve been doing very little SEO that you are going to not be affected by this change. But if you’ve been going way far beyond the pale, then that’s the sort of thing where your site might not rank as highly as it did before.”
[I]A lot of people seem to think that Google hates SEO. That’s definitely not the case…
[I] We even made a video about this. If you do a search for webmaster videos, we’ve made something like 400 videos. And we made one specifically to say Google does not hate SEO, because SEO can often be very helpful. It can make a site more crawlable. It can make a site more accessible. It can think about the words that users are going to type whenever they come to a search engine and make sure that those words are on the page, which just makes the site more user-friendly.
So the same sorts of things you do to optimize your return on investment and how well something spreads virally or socially is the exact same sort of stuff that often works well from a search engine perspective. So there is a ton of stuff that is fantastic to do as an SEO, it just makes your content more crawlable and more accessible.“