SEO is very important for website because trough the SEO we can increase ranking and traffic. I agree with you that SEO is overrated but it is good for website. Yes i think more SEO is worthwhile because maintain high rank of website.
SEO & Content Optimization should be in proper balance. Sometime, webmaster busy on making high quality content but there is no one to reach them and sometime busy in just doing SEO but there is no quality content. Both situation will made adverse effect in terms of SEO.
We also have to improve our business through SEO, increase our ranks, there is no other way ... Maybe large Web sites that rely on Web site content to improve ranking, small Web site through SEO, increase rankings through the BACKLINK.
I'd say SEO is overrated in the sense that Google has control of the world's biggest search engine and can toy around with its subjects as it sees fit. It's about time webmasters tone down the G-loving and start driving traffic through means other than SEO.