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For several of my most crucial keyword combinations, pages with a PR2 have moved above my PR5-6 pages, knocking me out of #1 or #2 or #3 positions into 2s,4s 5s, etc. In comparing the two sites (leaving aside the fact that the other site plagerized some of my copy), it bacame clear to me that the higher ranking pages were better optimized.
This is a wake up call. I've just made changes which I trust will be picked up in the ensuing crawls. Hopefully, then, my higher PR will give me the edge.
I had let my pages go without touching them as long as they were doing better than the others. I'm really grateful for all the knowledge I've garnered on this and other boards.
The same thing happened last month. (And I seem to remember a similar thread). A couple of weeks later things had settled back to normal looking results.