No no, you have it all wrong. Jason said he doesn't know anything about SEO and just happens to accidentally stumble on all the techniques (then apologizes but doesn't stop using them).
Keyword domains are something that SEO people have been using for a long time. It isn't really against terms of service, especially not if you actually have different content on each domain. Basically, you can boost your site's ranking by setting up numerous smaller sites that funnel traffic and Google PR to your site.
It works for some, but isn't my chosen technique for getting quality web traffic.
