Domain names are not the end-all and be-all for SEO, certainly.
Keywords in Domain Names
However, it can be seen as an accelerator and an ace in the hand. You still need a good hand. That said, the value of a domain name tuned to two or three important (high volume and relevant) keywords, should not be underestimated.
Keywords in domain names should be seen as a paved path to traffic from search engines.
Practical Ecommerce has a good article on Domain name factors to consider.