i think no any website admin use this type of tag in inner pages. directory and free services provider site put this type of code in page bcz daily thousand of visitor post on that site and if they use follow tag so google penalize him
i think used no follow can't be help to increase traffic and PR ... i will prefer to used do follow, because we can easy to do SEO for getting more backlink .... Thanks
As pwslinks said - PageRank sculpting of this kind was fashionable a year or so ago. The idea being, that the PR you're passing from a homepage to your most important pages isn't 'diluted' by being passed to less important pages too. In general you coukd use it if there are parts of the site you're not keen to get indexed - terms and conditions, that sort of thing, though adding a noindex robots txt would be more efficient.
Many sites have shopping carts and member log in or log out links. This type of link is simply an administrative function and does nothing to contribute to site content. The search engine does not need to index those pages. So that type of internal link use nofollow. Workforce Management Time And Attendance
you can use nofollow its on you.........normally wants that crawler comes to home page from a backlink and index the home page and then follow the links on home page and crawl other pages...........if you don't have this type of requirement then you can use nofollow..........for all internal links...
Generally no one uses them but you can use them for PR sculpting. You can save link juice on a particular page that you need to land for user.