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That's probably inherent in the PR alg.
The most important sites with the most and best backlinks
get a 10. G then has to use a kind of step function (maybe logarithmic, maybe something else) that does:
from a to b backlinks -> PR 10
from b to c backlinks -> PR 9
That means, since the big players are adding links by the 100s of thousands, the scale will stretch. The same "backlink power" that give you a 5 before might by only sufficient for a 4, do to re-scaling.
If I'm completely wrong about this pls. let me know - I can take it :)
Why is that crazy?
Many people have the wrong belief that high PR automatically equals high SERPs.
That is not the case as been proven time and time again. This is not a new phenomenon either. Even more so now since the value of PR appears to of been downgraded.
PR does not mean as much as it used these days.
In the other hand, site still is being found in google's searches...
However, is site penalized or not?
Why my backlinks are gone?
I introduced some changes to my pr4 site and seems I screw it...
What of these could cause my pr down to 0?
1-Linking to subdomain with identical content but different language
2- Changing title to: keyword1 to city, keyword2 of keyword1 of city region
Using keywords this way:
key1 in city, key1, key1 of city, otherkey, key1 in othercity, city, something,
Is that harmfull because they are repeated with variations?
3-h1 and h2 used in homepage without body text
PS NO reason for site to be penalized by the way.. did nothing wrong at all... nothing.