There's no such thing as google page rate. Just google page rank. (Contrary to popular belief, it was actually named after Google co-founder Larry Page).
There are two types of page rank - Internal PR and Toolbar PR. Internal PR is the secret Google algorithm that ranks every webpage and contributes to how sites rank in the SERPS. Toolbar PR is what Google lets us who download the Google browser toolbar see in the form of little green pixels. It's either outdated or Google is just feeding us what they want us to think or who knows what ... it is rather meaningless nowadays.
No google is removing page rank concept, and are going to replace with page rate concept.
As many high page rank people were selling links(without nofollow tag) for very high price
and google was passing the page rank to people who were buying links from high page rank sites.
You can read mattcutt's blog(google employee) to find out google is coming strongly after people who sells links without nofollow as well as who buys link for getting better page rank.
1. The person wants to make up a story to get traffic. Don't give it to them!
2. Larry Page will never want to get rid of PageRank. Sure, people have wanted to get rid of it for ages, but it's a big part of Google's brand even though it is pretty much useless to the rest of the world.
3. This isn't the first time I've heard this rumor. It's also not the last.
I love how a no-name blog "broke" the story. That explains everything in a nutshell.
I agree with your point #2, Tamar. We already know that Google is pushing false results out with their PR toolbar and they certainly don't want webmasters to follow it because it contributes too much towards paid links. The only reason I can think of them not getting rid of it entirely is because it's a big part of Google's brand and because the webmaster community seems to be able to accept the fact that it's fake/stale data but wouldn't be able to accept it disappearing from the toolbar completely.