The problem with PCS inflation is that it tends to reduce spread between great skaters and good skaters. Good skaters get more of an inflation (e.g., from 7 to 9) than great skaters (from 9 to 9.5). That said, I think Wagner was flat, looked like she was skating a new program, and deserved lower PCS than she received from an international panel, where she skated a three-year old comfortable program with attack.
I think they were trying to level out the top four on PCS and just let them fight it out on TES.