Well, G has rearranged the SERPs pretty significantly in my niche. Two weeks ago I would have said that the content of the site being linked to was more important than the anchor text. Today I am not sure.
A search for "widget maker california" (no quotes) has a page at #7 that only tangentially related.
Page Title - "Thingamabob Links"
URL - www.notrelatedtowidgets.com/thingamabob-links.htm
The site offers services that widget makers might use. It is a links page. The OBL anchor of four of these links contain all of the words in the query.
The site should in no way rank in the top 100 for the query, yet there it is at #7.
The searchengineworld keyword density analyzer shows the search term at a little over 5% for three word queries.
Tool bar PR (for what it's worth) is 4.
Now, two weeks ago I had a page that ranked #1 for this query. Toolbar PR of 4. All OBL anchor text were the URL of the target. It was a simple directory page of widget makers in California.
I am thinking that I need to change the OBL anchor text on that page :)
<added>I should have mentioned, only one of the top ten results on the query is the site of a California widget maker. All the others are directories or links pages!</added>