Moral of the story is that link out without thinking of PR loss etc. Just be a little bit careful and don't link out from your home page or other high PR pages with few links unless the linked sites are really really outstanding.
Could you explain this more fully for me? I have about 10 outgoing links on a home page. 5 to competitors and 5 to .gov's. All these links I would deem as benificial to my users. Is this hurting me somehow?