However, is the only way to determine "good" content thru the number of links that the site has? Or does Google somehow have other algorithms? My site focuses on a subject that really doesn't have a well-developed community at all, so the chances of people linking to my site are very, very slim.
So basically, I'm creating what I believe is good, original content, vs my peers that have no content but lots of links to their site via gaming methods. And their gaming methods are really working, at least on Google, so I'm wondering, can I can really gain any ground against them?
Can you really afford to wait 7 years for Google for the "just create good content" guys to win? Unless you got a budget of millions, and time to wait, the answer is No.
That doesn't mean you should get out your blackhat. But it means you have to proactively improve your SEO, rather than relying on good quality content. You play the game, but you ditch the blackhat strategies.