The newly crowned Masters champion responded strongly to a disappointing finish in his opening round, where four late bogeys saw him settle for a 74, by firing a bogey-free 67 at Aronimink Golf Club.
McIlroy's composed display in difficult conditions lifted him to one over par for the tournament, leaving him five shots adrift of halfway leaders Alex Smalley and Maverick McNealy.
"It has been hard to make birdies out there because obviously the wind the last couple days, but also where they have put these hole locations," he told reporters after his second round.
"I feel like they have really tried to protect the course the first couple of days.
"It seems like they have used up a lot of the really hard ones [pins]. Depending upon a little bit calmer conditions and maybe a couple more favourable hole locations, I think guys that are just here for the weekend - I think everyone's got to feel like they have got a chance.
"It's bunched, but you get on a run with wedges on that front nine and you shoot four of five under and all of a sudden you're right in the thick of things. At five back I do feel like I'm right in the tournament, and that's really what I wanted to do today."
McIlroy questioned whether the bunched leaderboard was a sign of a course that had not been set up correctly. The eight-shot gap between the halfway leaders and the cut line of four over matched the smallest margin in PGA Championship history.
"I think a bunched leaderboard like this, it's a sign of not a great set-up," McIlroy added. "I think when it's as bunched as it is, it hasn't really enabled anyone to separate themselves.
"It's easy to make a ton of pars, hard to make birdies. Not that it's hard to make bogey, but it feels like bogey's the worst score you're going to shoot on any one hole. There's not a lot of hazards.
"I think the set-up is fine - the golf course is good, the pins were tough and the wind was what it was as well. I've always felt like really good set-ups start to spread the field a bit and not great set-ups sort of bring everyone together. I feel like that's what's happened the last two days."