I have a large, high traffic site (1+ million pages indexed), which was hit hard (-60%) by Panda 1.0 and has yet to recover. I've already pruned/noindexed a huge number of pages, but I know I've got to take things a step further if I'm going to have any chance of lifting the penalty (Yes, I'm also making other improvements in parallel). However, I'm faced with a conundrum... many of the remaining pages I'd like to eliminate for being low(ish) quality, or duplicative, still get traffic. For any one such page, it may only be a single visit, but in aggregate these pages account for perhaps 30% of all traffic that remains post-Panda. So, cutting them will hurt, and I may not be able to get the traffic back by restoring them if I change my mind about their value down the line.
Given the potential downside, am I being to harsh in my editorial judgement that these pages should be eliminated, or should I take the hint that Google still sees value in them? In other words, is traffic from Google confirmation that a page is of sufficient quality that it won't contribute to a Panda penalty?