That is what I was gonna suggest too. In general I favor short domains, even though bookmarking has come so far in the past 10 years.  Everyone bookmarks everything these days, so you don't need to worry as much about spelling and remembering a long name.  With that said I still like the short domains.

Branding will be a big part with the shorter, new domain name.  You can make up for the lack of keywords in the domain name with some quality content and strong, local links.

Great suggestions.  I've recently combined some pages (login/register, about/contact/ToS/privacy, and a few others) and have been very happy with the results.  I removed 8 links from every page.

I am also thinking about removing some more links from my product pages, to try and keep the most juice on those pages.  Those pages don't need the same navigation as the homepage.