This is a great web links component, even without the added benefit of two-way link exchanges. It gives you much more flexibility than the standard Joomla! web links component, allowing pagination and subcategories, which is great as far as search engine optimization (SEO) goes (too many external links on one page is does not help the page rank of the sites you're linking to).
On top of the ability to have a better organized links/directory page, JV-LinkExchanger adds the ability for visitors to perform a two-way (reciprocal) link exchange with you via an easy to use form, and for other folks to recommend site for inclusion without an exchange - the best of both worlds! It also has a powerful back-end to manage you links, displaying page ranks, traffic and reciprocal link status for the sites you link to.
The developer is very active in the component's forum, as are the users. The developer is also very receptive to feature requests, even when I made five of them in one day!
I highly recommend this to everyone as a replacement for the default Joomla! web links component, even if you only want to use a few of its features, it's worth it!