PageRank does still matter.
PageRank reflects how likely a visitor is to land on the page. The more likely, the higher the PageRank. The reason that Google has downgraded PageRank is because the likelihood that you land on a page does not reflect the quality of the content on the page. Saying that, getting a link from a site with 3 PageRank vs 5 PageRank makes a huge difference.
This is how it works:
C has a high pagerank despite the fact that it has not many links to it, because it is linked to from B, a site people are 38.4% likely to land on. The link on Page B to page C makes it very likely that visitors to Page B will eventually find Page C. Compare that to the likelihood that one would find page D (3.9%). That is small compared to the strength of page B, as a result, a link from page D cannot pass on as much value to A as B does to C.
Moral of the story: getting a link from a site with high PageRank matters, but it is not the only factor that weighs. If you get a link from a page with high PageRank, but your content is really bad, you won't rank well in the search engines.