This is always a discussion I see that really does not matter all that much. Do not write content with keyword density in mind. Write it on topic and for the users and it should com naturally. If you focus too much on pushing your keyword in teh copy then it will look spammy and may be hard for readers.
As for length, I say the more the better. You do not want a page with nothing on it but you also do not want pages and pages of absolute nothing. 500-1000 words i think is a good range