Are the Keyword in the Title Matters?

This is a million dollar question of most of the bloggers. You should include a keyword in your title. It's better to put the keyword right at the beginning and all the extra words after it. because it matters a lot.

For SEO purposes on your blog you want to include your targeted keyword in the title, URL, first and last line of the copy, article tags, Headings, and sprinkled throughout the body of your blog post.

Some of my friends are arguing that Google or Yahoo....they don't have any keywords in their domain but they rule the search engines.... : )

Will anybody clarify this doubt?