Is Google Officially Supporting Cloaking and Paid Links?

Is Google Officially Supporting Cloaking and Paid Links?

Google has interest (using Google Ventures) in VigLinks. Viglinks is a content monetization company that uses Javascript to automatically change ordinary links into affiliate links. Wait. Automatically build/tag external links? This sounds like something Google won’t recommend let alone support. IMHO VigLinks mechanism is not really in compliance with Google Webmaster Guidelines (and others).
Basically, what they do is: you write something text content on your site and somewhere you link to an external site, with which you don’t have any affiliation. If you place their Javascript code on that page, the moment someone clicks on that link, VigLink are automatically adding an affiliate tracking code to that link. To be more precise, that tagging is done on the fly, at click only, and it doesn’t change the page source code.
I see  some big problems here:

1. Search engines will read the normal link (which passes link juice) while users will land on an affiliate page – this is called also cloaked URLs
2. Affiliation disclosure is not offered at click on affiliate links, which infringes the new FTC rules
3. Those natural links suddenly become paid links – viglinks is paying link thru affiliate commission
4. other problems will arise for sure

The way I see it, since Google is $$$ backing this company, it implies they are supporting their technology, which means they are supporting cloaking, paid links and infringe FTC rules.
Now, I don’t know about you, but when you get interest in a company like viglinks you have to be clearer regarding such practices.
Questions:

1. Will viglink’s publishers get flagged as spam? No, I don’t need an answer from VigLinks’ representative, but from Google
2. Are those links paid links?
3. Which link will Google use to evaluate the linked page? The affiliate link or the untagged link?

I can see the following scenario happening very soon: a publisher tags his pages with viglinks’ code and suddenly all link juice is dropping (because that’s what it is supposed to  happen if you employ paid links) or even worse, they get de-indexed. Then they will find out that Google is not taking those links into consideration because it’s part of the algo. Who’s to blame, VigLink or Google for supporting them?
Google, please shade some light on the subject. Cheers!
Do you have other questions you would like to add. Please feel free to do so, maybe someone will read and answer sometime