There is an interesting post on the MozBlog (formerly SEOMoz) on the goals of 'link building' along with some suggestions on how to do things better: 7 Reasons to Remove "Link Building" from Our Vocabulary - Moz
Your real goal is qualified quality traffic to your site. Links should be more of a metric than a means to that end."Link building" is a phrase used by most industry experts, many of whom I respect deeply. Unfortunately, their use of such terms grants a sort of license, shelter, and reassurance to people doing a very different kind of link building. The ambiguity can take new marketers some time to figure out, and our industry and personal reputations suffer at the hands of ineffective marketing.