Titan - lots of great stuff here. I'd like to add a little to what you said.
1. I think a site can be designed with nice graphics and still be properly optimized. Just make sure you use real text instead of graphical text.
2. Dynamic pages - Although they still present SEO challenges, I am finding for a while now that SEs are following dynamic links and ranking them, but not always. It is also hard to get PR on them.
3. Proper use of HTML - It is important to not have a "code heavy" page for SEO. Styles should be put in an external style sheet and linked to. The same goes for javascript. It should be put into an external .js file and called by a link. This make the page code lighter and enables the SE to read the important stuff without weeding through a quagmire of code. The keywords and tags are less diluted.
4. Further to CSS and tags - Each page should have a heading in an H1 tag, a sub-head in an H2 and then paragraph text - all of these having your main keywords for the page. H tags normally look like shit left alone. Control the look of the h tag text with a style.
5. Frames - yes, frames are bad, but iframes can be useful for SEO purposes...but I'm not sure if I want to give away that trick yet. ;-)
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