Honestly we have a menu in wich the keywords are repeated, but not blue widgets, red widgets etc. as that is only irritating for users and is keywordstuffing to me.
We have for exampel a site about diferent types of widgets, widgets could be for exampel type small and big where the words small and big are important keywords, not only on my site.
Then the links in the menu are like:
productname, 4 small (4 persons)
productname, big (10 persons)
productname, 2 big (6-8 persons)
This is good for user as they get information of how many there are if they need more than one, but could be seen as repeating keyword as small and big are many times and menu are on all pages also.
I been thinking on changing the menu, however I like it that way, and if I changed it, it would be just to "please" google.
I done some category pages instead but keeping the productlinks, this is good for users and maybe for google.
And in this update we have improved and have had since monday the days with most visitors since at least this year.
Maybe if I took away the productlinks we would be even better, we always been on first 10 of all important terms until last autum.
So I really would like to know.