Your observation of the phenomenon is correct, but you're a tad naive when it comes to "why". This has less to do with the domain name, and more to do with what the domain owners pay Google.
Bullshit. I would gladly pay google for higher placement in their results, and I have the money to do it. Show me the form where I can sign up, please.
I don't believe that for one second. Google doesn't care about the domain name it the site sucks.
Yup, but if the content is the same as somebody else's, then google uses the domain name to tell the difference. For people who sell real products and services, there often just is not that much content to put on the site. Then, things like the domain name make a difference.
Yet some of the most successful sites don't do that at all. Google, Yahoo and Amazon are fantastically successful, and both Slashdot and Digg are doing pretty well for themselves.
Those are all sites that are successful because they have regular readers/frequently repeating customers. If you sell widgets, and people only buy widgets once a year, people will go to your site once a year. Nobody links to widgets on their blogs. A lot of companies sell things that you buy once or twice in your life. Unless you want to get billions of dollars of capital together to build a company that immediately dominates your sector (it is spurious to claim that you could repeat google or amazon on a startup budget today) good SEO is really the only path.
Most of the sites that I visit that have descriptive names are using names that are descriptive of what company runs them rather than what they do (and that company name was already known/trademarked).
This is my point. In the case of the OP, the trademarked name is already registered. This is a serious problem.
I'm sure it helps you a little in search results, but it doesn't seem like it's that big of a deal.
When was the last time you purchased something from a company on the fifth page of Google? A small company I worked for paid thousands of euros to an SEO get first page google ranking. Our business (which was already pretty good) doubled immediately. Our main competitor had a position called Vice President of Search Engine Optimization, that is how important this is in a sector that has real, physical products (cheap consumer goods don't count).
In meatspace, if a business sets up in a poor location, it affects their traffic because it is a PHYSICAL business. More importantly, no land = no business. On the internet, very few people even type URLs anymore, they google everything. All that domain registration does is place a few letters in the address bar of people's browsers.
Of course, the name does enormous things for your placement in google. Just do a google search for "buy flowers": at least half the results have the search the search terms right in the domain name. This is not a coincidence.
If the name describes what you do and is also your branded name, your success in google is almost guaranteed.
Having a domain name that describes your company is tremendously important for a variety of reasons, not least of which is google ranking. Further, with modern browsers, the address bar searches your history. If you have your name or your product in the domain, this helps people find you a second time. Google Chrome is even better: search and address bar are the same. While I despise these people who park pages, their price is usually worth it if you are a company and the name is good.
So, in the cyber-world, picking the name actually does make a big difference in the amount of traffic you get. Having "widgets.com" really is the equivalent of being off of the highway, while "example.com/widgets" is really miles down the road.
Also, giving up domain names means completely abdicating your surfing to search engines and people who know SEO. Not a good idea.
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