PageRank is one of over 200 factors Google uses to determine the ranking of a page. It's an important factor, so it's not going to be "ignored" any time soon. But it's not the only factor, nor is it necessarily even the most important factor.
The problem is that the PR number we mere mortals can see is NOT the same as the PR number Google uses for rankings. The "real" PR is a fractional number between zero and one, while the PR displayed on the Google Toolbar (and, until recently, in Google's Webmaster Tools) is an outdated estimate between one and ten.
The confusion may have arisen because Google has stopped showing the PR number in their Webmaster Tools interface. It is still displayed on the Google toolbar, but -- as it has always been -- it's only updated on the toolbar every few months, while "real" PR (the number they use to determine rankings) is updated constantly.
"Real" PR is still probably about as important as it ever was -- which is to say, important, but not an end-all, be-all for rankings.
So is the PR number displayed on the Google Toolbar -- which is to say, not important at all.
My
--Torka