if you choosing keyword, how many competitor that you can tolerate. I have 17,500 competitor for my keyword, it's okay ?
even site with pr0 can rank at no 1. Pr is off page factor it doesn't affect your rankings in serps it just denotes the importance of ur page. Yes links are imp but not their no the quality and relevancy too. N if u work hard in getting quality links point to ur site even if its just few u can easily be in top positions.
Maybe, but odds are thats not the case for such a low competition keyword. But if there is such a site in number 1 then you could still go for 2, or 3, or 4. Unless of course that niche keyword just happens to be dominated by a pack of 500 pound gorrilla's. Rare.
You should watch only strenght of competitors not number of competitors. www.nichewatch.com will help you