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Myth:
You would see major changes in new updated.
Busted: No you can see it tomorrow.
I am pretty much impress with your SEO efforts. There is nothing which can be said as OVER optimization.Alwayrs try to over optimize your page but don't do keyword stuffing or such bad things.
Problem:
Your competitior has good number of links (from irrelevant) websites.But you haven't mention about the majority of anchors for your competitor webpage.
I would suggest try to get more backlinks and backlinks.It would ultimately help you to improve your rank in SERP.
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