jdMorgan - 5:40 pm on Oct 17, 2010 (gmt 0)
I've mentioned it before, but a simple algo fix would be to measure not the just the PR of a page, but the PR flow *through* a page. If you equate PR to water pressure (e.g. pounds per square inch), then the more inbound links (increased pressure) to a page and the fewer links out of a page (pressure-reducing leaks), the better. But if instead you equate PR to water flow through a page, then both inbound and outbound links bring a ranking benefit.
If you're more familiar with electronics than hydraulics, then the same idea applies equating PR to current instead of voltage (as it is now).
A change like this (likely with weighting factors on pressure/voltage and flow/current) would likely put a quick stop to PR-hoarding "dead-end" pages and Google's self-defeating nofollow idea.