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I interpreted it (dont know if I'm right) not as a passing on of page rank, but as Google mistakenly viewing the sub-page as a branch of a large 'authority' site.
Incidentally, did anybody see a change in the serps yesterday? One of my sites (a previously high-performing small commercial site sent way down in austin) came back quite strongly for all search terms.
I interpreted it (dont know if I'm right) not as a passing on of page rank, but as Google mistakenly viewing the sub-page as a branch of a large 'authority' site.
...that's sort of how I saw it, sorry perhaps I wasn't clear enough. If that were the case the 'sub' domain would inherit most of the 'parent' domain's PR...