mona - 3:10 pm on Nov 22, 2006 (gmt 0)

Would it be better to have some kind of "hey searching for this?" somewhere on the home page (specifically in the golden triangle) and create a landing page specifically for them to go and learn that while the keyword is immensly niche popular, it really does not exist anymore, but here is something better?

Why not give it a shot? It should be easy to set up. And if you get that much traffic, it shouldn't take long to compare the results of the landing page vs no landing page. Good luck!