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That worked until the Google changes. Now, it seems that mentioning a Keyword more than a few times on a page gets the page dropped from Google's results for that keyword. Perhaps now optimizing for a keyword means mentioning it only once or twice?!
Of course, if you follow this Google SEO logic and make your pages more general, your page will fall in other SE's. Plus, you will be diluting the information for live searchers.
I think that both SEs and humans still want pages that are targeted on specific topics. If you search for “little widgets in new york”, you don’t want a page about “widgets and stuff”. Google knows that.
Of course. If you have a large site, having pages on different topics is natural, and tweaking them somewhat for different variations of keywords makes sense and has no negative in terms of users. (Just making baloney pages for the search engine though is not a great idea.) In other words, it would be dumb to title all your pages the same. Titling one Nebraska Widgeting and another Widgeting in Nebraska is a sensible thing to do.