The length of the domain means nothing, if it is not marketable. No one is going to pay top dollar for a domain strictly based on how many letters it has, unless it is marketable to, and for them. You have to think like a consumer, not like a webmaster. More consumers will remember and type in "Consolidated Mortgage Loans.com" (for instance), than "CONML.COM". People don't like to remember anagrams, and abbreviations. They remember words, and images, and if your SEO is up to par, it shouldn't matter. Why waste the space of having to explain "CONML.COM' when Having a memorable and marketable domain, will say it all. It's about making it easy, not harder. Consumers don't think like us, nor do they care to.
I agree with you. words in domain name is good for your targeted keywords also. But in direct visitors its not good using that long typed domain names coz a lot of users is too lazy to type and most of them will not remember your website.