Did you read through all the comments? There is a lot of useful information in there. Here is another article by Rand shortly after the update that describes how this will affect websites:
http://www.seomoz.org/blog/google-says-yes-you-can-still-sculpt-pagerank-no-you-cant-do-it-with-nofollow
Here's a simplified example: Say you have a page with 10 links on it, this page is essentially passing on 10 points of Page Rank (PR) to other pages on your site. If you nofollow 3 of the links you are only passing on 7 points to the rest of your site, the remaining 3 points evaporate. If you have 500 pages on your site and you nofollow just 3 links on each page then how much of your PR are you wasting in total?
This is why Matt recommends that you let your PR flow freely through your site. PR sculpting using this strategy used to work before they made this change in 2009.
Of course this is still down to interpretation and how much you believe what Google says, obviously they don't give away too many secrets. This question gets asked in this forum every week and I would say the vast majority of the SEO experts here advise against this practice.
I hope that helps