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I do have a site that does well for cityname + a non related keyword, linking to these two sites. So that could explain some of it.
I don't have any on topic (widget) sites linking yet, but our pages seem way more optimized, have way higher PR and have a lot more inner links using good kw's in anchor than the competition who are killing us.
Is it our sites that are filtered for the keyword, or is it something about the keyword filter that is just filtering us out?
The reason I feel this way is that I already have this "filtered" word as anchor text. It's just that I think this word has a tendency for spam so I can imagine this is one way to kill a little of that off.