If PR really doesn't matter, how come I haven't found a single person with a PR higher than mine willing to exchange links? I think PR is very important. Maybe not so much for the SERPS (altough I personally believe it makes a difference) but for you to be able to increase linkage.
PR, so they say...is the root of all evil today. But if you ask for any rises...no surprises....they ain't giving none away. Personally, I think PR matters a LOT. I think the PR you see on your toolbar is six months old, so that doesn't matter.
Funny thing is, I have some websites that has like PR5 or PR6 but they are not really great websites and doesn't generate that much traffic. Personally, I think when you are doing SEO, you should just try to do the best you can and boost everything up. No one really knows for sure how the algorithims works so better be safe then sorry.
PR is an indication of your website quality according to Google's point of view. It helps your rank on other SE too though. high PR is not equal to high traffic. Depending on the competitiveness of the keywords. Keyword 'asjk8r84j' with PR 8 site will be bothered. Nobody will find such keyword. Also, your high PR may compete with other high PR sites too. Remember : High traffic is your ultimate goal, not high PR
Nod traffic has a lot to do with competition and keyword preferences. I would prefer better traffic to higher PR.
Yes it does really matter as you may get higher ranking in Google if you have higher page rank than your competitor
It matters but it appears, to me at least, that the value Google gives it varies from update to update. It is just ONE factor in a (confidential) basket of factors that affects how well your SERPs do at Google.