Since the Penguin/Panda update, Google doesn't ignore keywords in domains, it just gives less relevance to them these days. Exact match domains are still of value, just not what they used to be.
With regards to the pen name, that's probably the road I'm going to go since my last name is just too long and impossible to write or remember correctly. Plus, I really despise telling people I'm a writer in social conversations. It's a headache.
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