I have seen a number of keyword domains in the first page of the SERPS recently. I just way one for a search like this:
for a search on Google UK
where the combination is a commonly used phrase in the industry (searching with quotes gives 161k results)
It was third in the SERPS. It is a one page site with
1) A toolbar PR of 1
2) Very few incoming links: link: operator says none, Open site explorer says 41 from 4 domains, Majestic says 49 from 6 domains.
3) It is beating pages on strong sites including household name media sites.
4) My competing page is relegated to page 2, despite a higher toolbar PR for the page, and an incomoarably better links profile for the site (although only 5 external links from 2 domains for the page itself).
I can understand more direct links leading it to beat my site, but given it beats almost everyone, the only explanation I can think of is that the keywords in the domain work. Perhaps Google misinterprets the phrase as a brand?