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I personally believe keyword density is related to the competitions keyword density. So how many times your primary keywords should appear should be based upon how often they appear in the competitive sites.
Disclaimer: The above only applies if all other primary ranking attributes are equal. i.e. you have roughly equal PR, you have a similar number of backlinks, anchor text quality....etc,etc.
Keyword density is not a primary factor these days for SE's, it is just the iceing on the cake when you're close to competitors.
The more a keyword is repeated - the higher the score up to a point.
This only make sense. Otherwise you would innocently hurt people that had:
"A rose is a rose is a rose."
or:
name: steve phone: 555-1212
name: bob phone: 555-1234
name: ricky phone: 555-2222
...
...
...
Widgetville Real Estate - buy or sell Widgetville property
Wigetville Accommodation - book hotels in Widgetville
Widgetville Maps - find a street in Widgetville
So in that context 'Widgetville' appears about 50 times.
I'm just wondering if anyone can say with any certaintly whether that's going to get us in trouble or otherwise?
I can say for certain you will not get penalized for that type of page....I've got loads of them. You may not always rank at the top, but a penalty....nope!
<added>It is no different to [google.com...] </added>