Well worth a read and I couldn't agree more. Content does need reference to a keyword but it certainly does not need to be overloaded or reach a certain percentage.

Yes, a good read... I am glad to see that he referenced Matt Cutts and the dates. Density is so very old school however writing using actual keywords a searcher can find your content is still important. Don't write for search engines write for people, give enough detail that your visitor can convert into an action with your copy... If you just get traffic but no conversions then your copy is not really working for you ... RIGHT? At the end of the day we still need to conversions.

Is Keyword Density an actual signal in the algorithm? No. Can Keyword Density be used to rank better? Absolutely.

You're not trying to reach a specific density, but you use keyword density to ensure that the correct keywords are being targeted. It is a metric that helps enforce topic focus and that makes your content better for the user and the search engine.

I wrote about how to use Keyword Density in 2009 and Michael Gray just did a nice write up talking about keyword density.

Don't throw the baby out with the bath water.