In looking thru this blog post, it seems that keyword parsing helps little or none at all. Have any of you ever tested this as extensively as John and what was the outcome. I am also wondering because of the amounts of keyword rich domain names present within the top results of the current seo contests.
I've done quite a bit of looking into what's been written on the topic, and the only evidence I've seen offered so far is the highlighting. But as I said in my post, highlighting is not parsing. Parsing would involve Google recognizing words as words even when they are run together. Highlighting has nothing do to with recognizing words - the highlighting function simply highlights the search term, whether it is a word or not. http://www.google.com/search?hl=en&lr=&q=0865809
You can't really form an opinion just based on this. Those going out and registering these keyword rich hyphenated domain names, you could assume are more SEO savvy then the average webmaster, and so are probably doing more things right anyway to rank well.