So I spent half a year doing the minimum amount of actual work I thought I could get away while spending the rest of my time socializing and helping out coworkers. I think this basically made my manager lose her mind. She started badmouthing me to my skip level and using me as a scape goat for our project not working out (we were a small team and I went from the highest output worker to the slowest) but all my skip level manager would hear from other employees was how great an employee I was. Eventually she seemed to start avoiding me, and then went psycho and left the organization.
Overall, I think that this only works if everyone is straight forward and doesn't do any creepy things out of greed or ambition.