Every homepage has a given amount of "SEO Juice" that it can share among sub-pages *on the same domain*. So one should "no follow" unimportant non-landing pages like privacy policy, etc.

Is this right???

http://www.evisibility.com/blog/no-follow-tag/

I wouldn't worry about these things so much (as that takes time which is better spent elsewhere on your site, and that will also bring better "SEO Juice" because it improves the site), but yeah, we have reason to think that every page can pass PageRank, including PR onto internal pages... so if you have a PageRank 10 homepage and you include 10,000 links, then each link will only receive 1/10,000th of whatever value Google would pass for you if you'd only include 1 link (in the case of 10,000 links, well, you might also represent an "odd" pattern to Google which could lead to other downvaluing, but that's another issue).