Matt Cutts in his blog has an absolutely wacky example of how keyword stuffing gets you nowhere, a website by Alex Chiu clearly breaks all rules.
Though the website is supposedly about eternal life or so it claims to be, in one page Alex Chiu wonders why he is not indexed in Google and the reason Matt says is because:
“If you go back to Alex’s eternal life page and look at the bottom of the page, you’ll notice a very small textarea.†Apparently within the tiny text area, Alex has included about 50 Kb of keywords.
Alex Chiu's tiny text area features keywords like “alien cemetaryâ€, “unicorn assassinationsâ€, “tupac kazaa hospitalâ€, a whole lot of celebrity names etc.
This is a clear violation of Google's Webmaster guidelines where present is a special segment on avoiding keyword stuffing.

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Alexchiu.com has been banned from google BEFORE alex chiu added keywords on his webpage! Why?