Here's my take on it:
Exact match domain names are still workable, if you can get it down to two words or less. When you're at two words, Google gives you some weight with it. With three and four words, Google will assume your site is spam, and hit you hard for it.
The best you can do is build a unique brand with your domain name, and focus on good content, rather than worrying what your domain name says.
Unique brands have more value with humans than keyword domains anyway, and increasingly, Google cares about what people care about. The strategy of using keyword domain names is played out because people abused it.
Even MSN has come online with limiting the value of exact match domain names. If you're using a long term outlook, you're going to want to look like you're trying to game the system less and less.
The best way to get ahead in search engines is by building a good site, and having noteworthy content. Anybody can do this with their sites. Even a simple blog will work wonders for your ranking, especially if you're posting your blogs to twitter and facebook.
Originally Posted by spyindiatom
Does domain age affect the pr of a website..?
Only if there's been an active site at that domain. If not, then it doesn't really make any difference how old the domain name is. The clock starts ticking when you put up a valid site. The problem with older domain names happens when you totally change what's there. Google seems to take a lot longer to re-index than they would normally. It's really easy to get sent back to the sandbox when you do that.