Thanks for all your replies! The only thing my site is lacking is one of the domain name keywords. I have higher PRs for my pages, more quality backlinks, more pages of quality content added daily etc and so on! I figured it was NOT a good idea to move it to a new domain name with the "missing" keyword........

I'll just keep adding my content, doing more linking within my pages and trying to use the keyword phrase in more of my pages. My traffic is not affected at all and it keeps climbing so all in all, what's so bad about #2 right? I'm sure i won't move back to #1 due to the domain name.

So it would appear that having a hyphenated domain name is OK and not bad as a lot of people insist.

Again, thanks for your replies and suggestions