The best markup for navigating a site would be an HTML tag that best reflects your navigation. This is where rubber meets the road for HTML semantics.
Is your navigation a list that does not have a logical order? If so, it <UL>would be a good choice. Is your navigation more like a master that requires steps, or perhaps in alphabetical or numerical order? If so, it <OL>might be a better choice.
Providing your navigation in the form of simple links, as you mentioned, does not give semantic meaning; this suggests that your navigation is a sentence to read. By providing your links in a list, you give a hint on how we should interpret this series of hypertext words.
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