webmasters to modify PageRank flow at link-level granularity... other mechanisms also work (e.g. a link through a page that is robot.txt'ed out)... There's no stigma to using nofollow, even on your own internal links; for Google, nofollow'ed links are dropped out of our link graph; we don't even use such links for discovery... The nofollow meta tag does that same thing, but at a page level.
In the "you betcha!" corner, we have Stephan Spencer rebutting Shari in a Sphinn comment today by noting his team has used the technique successfully for clients.
According to our tests, there are plenty of occasions where [sculpting] can be a valuable tool... If you have an ecommerce site and the category pages contain 3 links to every single product page -- the product name as a text link, the product image thumbnail as an image link, and the words "View Product" as a text link -- you could nofollow the image and "View Product" links and funnel more PageRank through the much more contextually-relevant product-name-based text links.
GrayWolf makes the interesting observation that if the engines really knew to skip boilerplate links, then Apple and CNN wouldn't rank so highly for "contact us". I'm not a SEO guy, and I am not speaking from data, but Stephan's arguments resonate, and the Google guys aren't blackhatting the method. For kicks, we may try some sculpting on this blog. SEO-savvy retailers might want to consider this approach. Let us know what you learn!