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No, some downtime 6 months ago wouldn't have anything to do with your rankings right now. Relatively speaking, PR3 isn't high Page Rank, and if you're talking about the homepage being PR3 the interior pages more than likely aren't the same; they're probably less or may not have any.
The SERPs are not static, there are always changes and even in less competitive markets the competition is always looking to move ahead.
As long as you're in the index, it sounds like there may be a problem with lack of enough good decent PR or on-topic links, lack of appropriate anchor text for the affected pages and keywords, and in general it may be time to take a second look at the basic optimization of the site altogether.
pr3 is actually quite good for the field i work in. there are people on the first page with a pr of 2. also i think i have done a good job with my limited knowledge of optimising the page - lots of anchor text and relevant use of keywords - even alt text for the images etc. i am wondering whether i have been banned or something but some of my pages are still stored. the weird thing is that if i search, even using exact phrases used on my pages it never comes up in any of the results. when i do this on other sites i have (some with lower pr's) they always show in the results
cheers
jim