Loren Baker calls attention to the dangers of using NoFollow to links on your site.  Quite correctly, he points out that using NoFollow for instance to your contact page is telling Google that you don’t trust yourself.  And if you don’t trust yourself, why should Google trust you?

I’d take this point one step further and say you should not use “nofollow” except where it “naturally” occurs, such as on blog comments.

Putting my tin foil hat on, I wouldn’t be surprised if using NoFollow alerts Google to the fact that a site has been heavily SEO’d. 

If your site is SEO related, I guess that doesn’t matter, but for your ordinary websites I’d avoid it like the plague.  Don’t raise a flag with Google if you can help it.

Keeping NoFollow off websites just keeps your website a little lower on the radar.

Sevenseek