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With every update its more difficult to keep up Pagerank if no new external links are pointing to your site or to the sites linking to you. You probably were just slightly in the PR7 bracket. Now slightly under the threshold.
The fact that you have 170 external links on a links page has little direct influence IMO.
- a decrease of the PR of some pages linking to your site
- a decrease of transferred PR through additional links on pages with backlinks to your site
- a change in the PR algorithm
- a change in the Toolbar scale (The Toolbar PR is the relation to the most important page. Therefore, a change of the PR of this page can lead to a change of your Toolbar PR)
I was happy to have had a warning from Googleguy because we have several sites with lower pagerank but they all kept the positions they had.
So basically I understood that pagerank was lower for all sites (though this doesn't mean that the green pixels on the toolbar change for all sites). If this is the case it doesn't matter for the ranking.
So basically I understood that pagerank was lower for all sites
And makes perfect sense too.
Google continues the crawl new pages and since PageRank is calculated over the WWW universe (as Google knows it) at 3+ billion pages -- all PageRank levels will continue to decline if not continuously adding new PageRank as the rate Google finds new pages.