ppg, I think that strategy is sound, but don't rely too much on it. If you really want the page to rank well for those terms, get a few pr4 or above links pointing to it and be sure that those words are included in the anchor text.
That's a very good point. If you can use the kw's in different sequences throughout the page, it could very well add up to more hits. Don't forget plurals are considered different words in some engines, like Google.
I have a site that ranks #1 for our best 2 word phrase if it is singular. Add the "s" and all the way to #70 something. It's tough to get them all in there, just keep an eye on your logs and see what is working and always experiment.
By the way, I'm not an authority on this, It's just my 2