We have to gloat when we get the chance, because lets face it, no one else will say out loud when we are right. SEO Book have come out and highlighted a video from Matt Cutts where he explains the reduction in value for keyword focussed domains.
BTW We told you about this almost a year ago when we said that the value of keyword domains was already almost zero. The part where we and SEO Book disagree is where they say;
Classical SEO signals (on-page optimization, link anchor text, domain names, etc.) have value up until a point, but if Google is going to keep mixing in more and more signals from other data sources then the value of any single signal drops.
I actually think that this puts more emphasis on traditional SEO signals, like on-page optimisation and page authority, it just reduces, or removes, the value for a keyword related domain. The main two ways that Google will always use to decide the value of a page will be incoming link strength and on page content.