Hmnnnn, this one’s actually a biggie and speaking as someone who is the main principal behind a keyword rich site name i.e. Simple Leveraging then technically that should “nail my colours” to the mast.
In the interests of fairness let me highlight two opposing viewpoints on the issue and then give you my take.
First up there is Scott Boyd at Fused Nation ( http://www.fusednation.com/seo/q-are-keywords-in-your-domain-name-an-important-ranking-factor/ ) who is of the opinion that “there was a time when keyword domains were synonymous with spam (because as I said, spammers used to buy up keyword domains and throw up spam sites because they used to rank well because of the keyword in the domain). Personally, I ignore link requests and business requests from keyword domains for that reason – this may be the exception rather than the rule, but I believe there are probably a good percentage of website owners who feel the same.”
Whilst I agree with him on certain points in that it did cause a whole wave of “brain dead SEO” i.e. never mind about anything else just get a domain name linked to your keywords I still think having your keywords in a domain name still does have a certain amount of kudos.
These probably relate more to branding awareness and associate issues more than anything else. For example David Airey in his post about the “Real Value of Keyword Rich Domain Names” (http://www.davidairey.com/domain-name-keyword-importance/ ) uses two of his own sites as examples, logodesignlove.com and davidairey.com. He states that: “logodesignlove.com has significantly gained ground on davidairey.com because people use the text ‘logo design’ within their links, as opposed to ‘David Airey’.
An inbound link (one coming from another website) pointing to davidairey.com is most likely to be typed as David Airey. A similar link to logodesignlove.com is most likely to appear as Logo Design Love.
Considering the importance of anchor text on inbound links, this will have quite a bearing on web searches for ‘logo designer’.
With that in mind, the main point still reverts to your content, because if it’s not good quality, you won’t create any inbound links.”
I can understand and agree in parts with all that the above are talking about but as of the date of this post it has to be said that in empirical tests that if possible give me a keyword rich domain name (if available) any day of the week. I am currently looking at a domain name (a .com) registered as part of a potential joint venture in an ecommerce project over 3 months ago that as I write this piece has only a Title tag, a few lines of text and nothing else but is 100% keyword specific for its market (this is DIY and Home Refurbishment) and the domain name is sitting at No 1 in both Google and Yahoo in categories where there is over 450,000 competitors and a limited amount of traffic.
So to sum, if you can, get a keyword rich domain name but don’t lose any sleep if you can’t as a successful name and profile can just as easily be built up using great content (now that’s another issue) and smart SEO. 
