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Can you share your experience about Keyword rich domains; do they still hold same value as before?

What is the systematic what of doing keyword research? I have been optimizing some sites, keeping in mind the completion and relevance. But still I am not happy with the keywords selected. Can you tell me the international Standard why of selecting keywords for any site? A systematic way, which will work for any kind of website. Please give me some list of free tools also which I can use for it. Thanks

Why SEOmoz says to keep title tag not more than 65 characters? I have this question that what is the disadvantage if my meta title is 150 character? Why everyone focus in keeping it short ? If i put all my important keywords in starting of title tag say in first 65 characters and keep the title 100-150 character how can it hurt my website? Google will consider 65 character, right but it won’t penalize me for having 110 character then please explain Why we focus so much… 🙂 I know i used too many why 🙂 just to tell i am nt a lawyer 😉 just trying to act like one 🙂 , just kidding.