Internal Linking Structure For Building PR To Tier 3 Level Pages

My plan is to have page rank flow to the tier 3 level pages.

I need a way to keep my pages in Google's index.

So my plan is to obtain page rank to my homepage and category pages.

I would like some opinions on this diagram that I have attached.

Any help will be much appreciated.

I'm a bit lost, what is the site selling or teaching?

If I'm looking for something local I search by city THEN item...
If I'm buying on the internet I don't care about city.

Too many drop downs can be a bit confusing...
But I'm not experienced in running large 20+ sites mine are 10 at most.

Its look like you are trying to achieve Theming Through Siloing(Silo Structure)
http://www.seo2020.com/lsi/silo-structured-website.html
http://www.bruceclay.com/seo/silo.htm

But if you go so deep in directory then getting PR would be difficult for you to the deepest one.
You just can't rely on getting PR through PR leak from home page. You have to promote your internal pages also to get PR to them.

From a usability perspective it's not perfect. Surely for practical purposes people will want to get to the home page from everywhere.

When someone searches for category in town ie shoe shops in stoke on trent http://bit.ly/92eRQz this is the kind of page that I’m trying to promote.

so if you lived in stoke on trent you would search for stoke on Trent shoe shops? Interesting.

It's not a dropdown, it's currently an abc list at the bottom of my homepage.

i'm currently working on implementing this new structure on the homepage where i will start from 32 popular categories.

I have spent hours trying to find a better way to implement 5000 locations and 1800 categories and this was the best I could do.

So 5000 x 1800 = 9'000'000 pages. Obviously I’m not expecting all of these pages to get indexed.

but when someone adds a company to the site, then it should be indexed, and for this I will be having a list of recent pages updated to feature on the homepage, I will also be instructing the company owner to make a good page by following steps, like the way Squidoo does it.

It will then have a quality score which determines if the company page will provide a follow link to their own site.

In order to get a good quality score, they will need to add some code to their site which will give my site a back link, this will be done in a form of anchor text badge.

My main concern is the link structure, which is a fundamental step in moving forward with this project.