I wouldn't put to much weight in G's backlinks. Things like allinanchor are more important.
Speaking of more important, how is everyone doing with the recent algo update by Google? Some of our KW's dropped - a few of them 20+ spots.
No matter what your site has done lately, I wouldn't get too up or down about it. Matt Cutts at Google reported that we will be seeing more algo tweaks over the next 3-4 weeks.
Usually Google rolls out changes over time, and they do pay attention to what the SEO forums are saying as well as the email that they receive regarding changes. That's why that in the past you might see a big gain or drop from your site, then it usually settles back to near where it was before.
I agree...that is what has happened on our sites as well! We dropped about the same amount...Ouch...I hope it is temporary! Although our PR went to a 5