I'm not sure of the technical answer (no one is really) but page rank matters as far as getting links from other sites is concerned.
If you ask another webmaster for a link then he will most likely look at your page rank? Also Someone is more likely to ask you for a reciprocal link if your PR is 2 or over.
In this respect it matters a lot.
In terms of everyday search performance, I don't think it makes much difference though?
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