It's a myth with keywords in the domain name. You can use keyword subdomains and it worked just fine. My rule is that you should have at least one keyword in the URL. And the URL should not be longer than 15 words (incl. domain, subdomain, path)
I find the keyword in the domain does help, but it really isn't worth chasing to the point of having a stupid name.. What you really want is an "exact phrase match"
Separately, what about subdomains?