[olefoo]

It really depends on what you're doing, and what your strategy is.

If you're playing for a mobile audience and expecting much of your first time traffic to come from direct navigation (someone typing the URL into a browser), then a short, memorable, easily spelled domain name is a priority.

If you're doing some sort of long-tail content play, then it's more important that your domain have good SEO characteristics and help your site rank for the appropriate keywords.

There's no right answer; only answers that are right for a given context and budget. But from what we've seen so far functionality and effectiveness trump the domain name. You can be a raging success with a goofy domain name (e.g. google.com, del.icio.us, 37signals.com) and a huge flop with an awesome domain (colors.com).