Search counts don't determine the competitiveness of a keyword.
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I did a check...in Overture
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Overture is worthless. Take, for example, this:
If you followed Overture, you would target "Suzuki Motorcycle", which drives no traffic. The traffic is in "Suzuki Motorcycles"
(plural) - which is, by the way, over 10,000 searches per month.
As to your question, should you target keywords that you cannot get top ranking on? No, of course you should not. If I target "hosting", and end up ranked #200, it won't drive any traffic. You'd do better to target a less competitive search term if it's going to drive traffic.