The truth? Today, rising above the noise and achieving any semblance of visibility has become a monumental undertaking. While we might prevail at searching, we fail at being found. How are we supposed to get notice while swimming in a sea of misinformation and disinformation? We've become immersed in this guru gauntlet where one expert after another is attempting to teach us how we can get the proverbial word out about our businesses and achieve visibility to drive more leads and sales, but we all still seem to be lost.
You want better PageRank? Then you want links, and so the link-selling economy emerged. Networks developed so that people could buy links and improve their PageRank scores, in turn potentially improving their ability to rank on Google for different terms. Google had positioned links as votes cast by the “democratic nature of the web.” Link networks were the Super PACs of this election, where money could influence those votes.
A more intelligent surfer that probabilistically hops from page to page depending on the content of the pages and query terms the surfer that it is looking for. This model is based on a query-dependent PageRank score of a page which as the name suggests is also a function of query. When given a multiple-term query, Q={q1,q2,...}, the surfer selects a q according to some probability distribution, P(q) and uses that term to guide its behavior for a large number of steps. It then selects another term according to the distribution to determine its behavior, and so on. The resulting distribution over visited web pages is QD-PageRank.[41]
SEO experts have a really bad habit: They like to throw around strange words and industry jargon when they talk to customers without checking to make sure that their clients understand the topic at hand. Some do this intentionally to paper over the fact that they use black hat techniques that will ultimately hurt their customers. But for most, it’s simply a matter of failing to recognize that part of their job is to educate their clients.
I still think you’re going to cause a new form of sculpting, where people will remove links from their pages other than using nofollow, in hopes flowing PageRank to links they think are important. You’ve said number of links matter — and that nofollow doesn’t reduce those links — so some will keep chasing after whatever extra oomph may be out there.

nofollow is beyond a joke now. There is so much confusion (especially when other engines’ treatment is factored in), I don’t know how you expect a regular publisher to keep up. The expectation seems to have shifted from “Do it for humans and all else will follow” to “Hang on our every word, do what we say, if we change our minds then change everything” and nofollow lead the way. I could give other examples of this attitude (e.g. “We don’t follow JavaScript links so it’s ‘safe’ to use those for paid links”), but nofollow is surely the worst.
I think it is important you distinguish your advice about no-following INTERNAL links and no-following EXTERNAL links for user-generated content. Most popular UGC-heavy sites have no-followed links as they can’t possibly police them editorially & want to give some indication to the search engines that the links haven’t been editorially approved, but still might provide some user benefit. 

At the time I was strongly advocating page rank sculting by inclusion of no follow links on “related product” links. It’s interesting to note that my proposed technique would have perhaps worked for a little while then would have lost its effectiveness. Eventualy I reached the point where my efforts delivered diminishing returns which was perhaps unavoidable.
I won’t blame MC. Google, knows what they does. These are things that webmasters need not worry about. Well, it won’t make much difference as far as I think. I don’t use no follow tags specifically – I use WP for blogging purposes and it does rest of the things for me other than writing content which I do. I think it is the content and the external links that sites point to – which should be considered. I mean, if a computer blog owner posts a really fantastic computer article about something related to computer, and also puts some links to external pages (which are really useful for the readers), then that post, should be ranked high in gooogle – And I think google does this well – So, webmasters, just concentrate on yur website/blogs etc and leave rest of the things to Big G.
i.e. the PageRank value for a page u is dependent on the PageRank values for each page v contained in the set Bu (the set containing all pages linking to page u), divided by the number L(v) of links from page v. The algorithm involves a damping factor for the calculation of the pagerank. It is like the income tax which the govt extracts from one despite paying him itself.
As mentioned above, the two versions of the algorithm do not differ fundamentally from each other. A PageRank which has been calculated by using the second version of the algorithm has to be multiplied by the total number of web pages to get the according PageRank that would have been caculated by using the first version. Even Page and Brin mixed up the two algorithm versions in their most popular paper "The Anatomy of a Large-Scale Hypertextual Web Search Engine", where they claim the first version of the algorithm to form a probability distribution over web pages with the sum of all pages' PageRanks being one.
Adjusting how Google treats nofollows is clearly a major shift (as the frenzy in the SEO community has demonstrated). So, if Google were to adjust how they treat nofollows they would need to phase it in gradually. I believe this latest (whether in 2008 or 2009) change is simply a move in the direction of greater changes to come regarding nofollow. It is the logical first step.
The better you learn and understand SEO and the more strides you take to learn this seemingly confusing and complex discipline, the more likely you'll be to appear organically in search results. And let's face it, organic search is important to marketing online. Considering that most people don't have massive advertising budgets and don't know the first thing about lead magnets, squeeze pages and sales funnels, appearing visible is critical towards long-term success.

Online marketing, also called digital marketing, is the process of using the web and internet-connected services to promote your business and website. There are a number of disciplines within online marketing. Some of these include social media, search engine marketing (SEM), search engine optimization (SEO), email marketing, online advertising and mobile advertising.

Denver Search Engine Optimization

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