Search Engine Watch had an interesting post by Eric Enge about PageRank Obsession. I have seen it myself with customers and co-workers that when talking about a sites SEO performance through out the PageRank as the number one cause of their not ranking well, when it is usually lack of fresh, keyword rich content that is the major cause that I see. It isn't surprising, when you have easily identifiable statistics, as Eric states, "We all want to measure the progress of our site(s) in as many ways as we can." People are very competitive by nature, not at all things but at those things that are important to them they are. If someone is in charge of a Web site you can bet they are competitive and measure anything they can.
However, at the end of the day, search engine ranking doesn't matter, it is your site and your customer's experience that matters. All the numbers and metrics don't mean a thing if your customers aren't engaged and convert. I've seen some very search engine friendly sites that are not customer friendly, and I've seen some very engaging sites that search engines hate. Find the balance that works for you and measure the things that are truly important. It is the same thing I tell customers about Web Analytics. I see so many measuring hits, visits and page views, when they don't mean anything to you if you are selling something. If your focus is eCommerce then you need to be worried about getting customers to buy and come back to buy again in the future. More traffic often just means higher hosting costs and other performance problems. It is great exposure, but if nobody buys what does that traffic get you?
I agree with Eric, focus on your customers, they should come first in everything that you do.
