Interesting what you say about removing www from domain name. But it does NOT make sense! In 2007, I set preferred domain to saliu.com in Google Webmaster Tools. I think I noticed a DROP in PR for most pages at my
www.saliu.com site. I reset the preferred domain back to www and I think the result was positive! What gives? Why do you think that removing WWW is the prefrred choice for domain name?
In your example above you just show the three choices at Google Webmaster Tools, but you don't mark what choice! Is 'Don't set an association' the best choice for a webmaster?
Ion Saliu