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So when someone asks my PR 4 site for a link to trade and their site is PR 2 that would be suicide for me right?
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Not really.
It could just be that they are a new site. My latest is still PR2, but it won't be for long;-) So anyone who refuses a link on that basis would be shooting themselves in the foot.
It would be better to judge the site on other factors, like does it have any unique content that might eventually attract more links? Or the general quality of the site. Does the webmaster seem like someone who knows what they are doing and means business. Or have they just thrown a site together, using a free server and no domain name?
I was checking out a possible link exchange yesterday, and it said they would only exchange links if their link was on a PR4 page. When I looked, their own links page only had PR2!
I seldom link with sites that don't pass a reasonable amount of
PR to their links page. I try to give my link partners a good deal (a very good deal in fact), and expect the same in return.