Why Long tail keywords support is important in automatically generated site-wide links inside content?

When speaking about many links and huge site, automatic internal linking works only for longtail keywords. Why? Why Google Panda will punish your site if you have many internal or external links with anchors only one and two words.

To really work automatic linking, your links must have "stop words" inside #anchors , so your link must be not only "keyword" or "quality keyword", the right anchor is "keyword  FROM... mysite dot com" or  "find the best keyword IN ... my brand". And this is possible to work automatically only with our extension. This one is component for #joomla , but extension have also version for #wordpress   and we have completely FREE versions for both Wordpress and Joomla!