If anyone wants to optimize their site(s) they should really give high priority to keyword density. The keyword density for the page content should be between 2.5% - 5%. However, as the PageRank of a site increases this percentage can be lowered. For ecample if your site has a PageRank above 5, a 1% keyword density would be ok.
Remember, higher the keyword density is less pretty your content gets. Therefore, for some industries like Hotels, where delicious content is needed to make the hotel look nice, a keyword density of 2.5% could be the maximum limit. These site's should concentrate more on improving there google PageRank.
Here's keyword density tool that you can use.
http://www.lankaseo.com//KeyWord_DensityTool.aspx