For example, one site I help with has just a few inbound links from low PR sites as far as Google is concerned, and gets a page rank of zero accordingly. In reality, it probably gets more inbound links via social networking in a single day on most days, and unsurprisingly those personal recommendations often drive more inbound traffic than any search engine.
Google's basic premise of ranking the importance of a site based on how many links it gets and where from is wildly inaccurate in the era of social networking. Normal people mostly don't run their own public web sites or blogs any more, they share stuff on sites like Facebook and often only with their "friends".
Personally, I think this is a good thing, because both as a visitor and as someone running sites I would rather rely on legitimate personal recommendations from people who are genuinely interested in a site than on some arbitrary algorithm running in a data centre somewhere on another continent. I don't think it's healthy for any one intermediary to have a dominant effect on whether interested people can find interesting content on the Web, and sites like search engines and social networks are merely intermediaries.