Pagerank is dead
The act of Google trying to "understand" the web caused the web itself to change. Blogs are only a recent example of that. Oddly, unlike many of the previous problems with Google (see also: search engine optimization companies; link spammers; google bombing), blogs were not designed to outsmart Google. They just happen to use the web and hyperlinks the way we should have been using them all along.
what is a blog ?
Trying to explain a blog to a non-blogger (like your boss) is pointless. You need to stop trying to explain what makes a blog special and instead explain what makes a blog easy. Blogs are the push-button publishing that everyone hyped inthe early days of the web. Blogging software makes it easy for anyone to publish. That’s all a blog is. That’s all the magic. Sometimes something simple is the hardest to define.
blogs - history
Blogs are easy to create, easy to maintain and fun to read.
Google & BlogNoise: the blogger's responsiblity
The blogger-side solution is actually quite simple: all we need to do is stop using permalinks pointing right into the middle of monthly archives! We need to make the permalinks point to single posts (possibly with comments and trackback).
I'll get less google hits... but hits don't matter! What you want from now on is increasing your google-hit satisfaction ratio! You want no more visitors coming to your blog by mistake !