What you have just described is a triangular link, a->c and b->a, you can also do a->b, b->c and c->a, its gamesmanship, so if you value your rankings why risk being kicked off or receiving a penalty when getting the no1 spot with the right methods is straight forward? Dont forget a one way link is not always better, it depends where its coming from.
Mr Gleam I dont get your last paragraph? In the old days in google you could find all your links by typing link:http://www.cleanitup.co.uk for example, in an effort to stop people manipulating rankings and caring so much about links it simply stopped showing them and just shows a selection now(there still in google), showing links is a separate thing to showing search results.