PR is just one of the factors that effect how your site ranks in google. There are quite a few others.
A good analogy is the college football BCS rankings, if you followed that CF faisco. Your rank is effected by who you played/beat/loss to (link to), but their rank is effected by who they played/beat/loss to (link to) and on, and on, and on.
A high PR simple means that google:
1. Knows about and has indexed the site.
2. Knows about and has indexed a lot of other sites that link to the site.
Traffic trading and PR trading don't have to be mutually exclusive. There's no reason you can't do both.
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