In most cases, it's "unnatural" to have a keyword-rich domain name, and surely this is not lost on the search engines
Have to disagree with you there Jill.
I'd argue that kw rich domains ( of sensible proportions ) actually help the user to gain an instant appreciation for what a website is about.
A domain entitled skiing-holidays-pyrenees.tld is most probably likely to be about exactly that - skiing holidays in the Pyrenees.
The domain name may assist in affirming to the user that this domain may be more inclined to be about skiing holidays in the Pyrenees than a website that said otherwise.
They certainly have their uses in all sorts of marketing campaigns and IMO are so much more user friendly than wordslostinanunintelligablestring.tld type domains.
Of course, it gets a little ridiculous of if a domain name over does things e.g best-priced-skiing-holidays-in-the-french-pyrenees.tld and is all too frequently abused by seo's engaging in strategies that could be described as a darker shade of pale.
You've no doubt noticed, that the current G algo would appear to be causing problems for certain types of kw rich doms, by virtue of the fact that where people in numbers link to these sites using the domain name string, there would be a high kw rich anchor text, which appears to trigger an 'over seo'd' anchor text type penalty.
I've evidence that suggests this is the case, albeit on a limited sample, whereby sites that are extremely relevant to the query, with good content and use, are suddenly nowhere to be found for their primary targets.
I just hope that G doesn't try to crack any more nuts with the proverbial sledgehammer, and reigns in the tweaks of this current update.