My $0.02
Holding all other aspects equal, content optimization should work to put you ahead of your competitors. But it's definitely not the way to get to the number 1 ranking for any significant term.
In-bound links are number 1.
How can this be proved? Simply look at the top sites for a quasi-popular search term. Check out the META tags and heading structure. Chances are that the content on these sites is not even close to optimized.
But, in my opinion, every little bit helps, so I'm still in favour of content optimization.
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