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Is this lag a ploy to make you spend more on PPC?
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Yes of course it is. Google is making no profits at all so they need to trick everybody into using adwords,... :D
Don't worry, it has nothing to do with PPC.
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If, like me, you have relevant sites but not a lot of traffic, is there a way to speed this process up?
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This is where your problem is.. relevant sites? What on earth is a relevant site? If you can figure out the answer to this one, you´re on your way to higher rankings.
Relevant sites don't get you high rankings. You have relevant sites,... and so do a zillion other people. What makes your site so much more relevant than theirs?
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I've got inbound links from recognised and higher PR sites.
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That´s good, but my first question would be: what does it say in the anchor texts? Probably a big part of your problem lays there.
The worsed thing you can do is think you have a relevant website. It makes you lazy. Don't look at relevance,... look at perceived relevance (which is dominated by links and all the link factors you can think of.)