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You need to create a path from your home page to each product to be sure of a crawl.
The link back to your homepage just ensures you pass some of the pagerank back to the homepage so you aren't wasting it. Of course, you can put links on your product pages to anywhere in your site, but to minimize pagerank drain, you should link back to your most important content pages.
Sorry but I'm not clear on something...why would Steve's plan decrease PR of the homepage?
Links to other pages from the homepage, so far as I understand it, do not dilute the PR of the homepage; only the PR of the pages linked to from the homepage (the more outbound links from a page, the more diulted each link becomes).
If anything, adding new pages could increase the homepage's PR...if all of the new pages link back to the homepage. Is that not correct?
Sorry but I'm not clear on something...why would Steve's plan decrease PR of the homepage?
Links to other pages from the homepage, so far as I understand it, do not dilute the PR of the homepage; only the PR of the pages linked to from the homepage (the more outbound links from a page, the more diluted each link becomes with respect to adding PR value to other pages).
If anything, adding new pages could increase the homepage's PR...if all of the new pages link back to the homepage. Is that not correct?
(sorry, hit a wrong button and added the edit as another post)
Steve_3231, regarding :
<my home page has links to about 15 basic pages of the site and each one of those pages links to the same 15 basic pages. Should the basic pages only link to the home page and NOT to all the basic pages?>
I believe it depends on whether you want to distribute PR value to the other 14 subs *plus* the homepage, or give more value back just to the homepage. That, like Yidaki suggested, is a difficult choice these days.