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You will hear certain people repeatedly say that PR is NOT everything.
as you mentioned listings have dropped!
but for which keyword?
naturally if you changed the title from Cars > Holidays, and then are doing searched for Cars, you are going to drop.
PR is only part of the puzzle, you really have to work hard on the other bits.
Review your titles and descriptions with a fine tooth comb, and you should be able to pick out where you went wrong.
Shak
Removed some content and changed the title
If thats all you changed then it seems likely. Is the title less focused than it was?
Are you seeing many new sites above you in this index that weren't there before?
For keyword domains, its the inbound link text that gives the advantage. They may have less links but with the right keywords in the anchor text for every one.
edit > bit too slow off the mark there ;-)
As said earlier, PR is just one part of the algo. I am consistently surprised that I can outrank pages with a PR6 or 7 with a PR2 or 3 page simply because the former have ignored title tags and/or suitable content.