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My question is do these 1,200 backlinks affect his PR?
yes
Since they are all in the same Domian you would think that it would just distribute the PR around his domain and not actually increase it.
As long as the number of pages of the site is unchanged (and the PR transferred to external pages is unchanged and you doesn't have dead ends) and just the link structure of the site is changed by adding/removing internal links, the PR of the site (sum of PR over all pages) in unchanged. You are just changing the distribution. However, the PR of a page (e.g. the index page) is changed. For example, you can decrease the PR of content pages and increase the PR of the main (index) page.