Is Keyword Density still important in SEO?

What exactly do you mean? are you asking if your keywords you want to rank for still need to be included in your content? the answer is yes and no. As long as you have variations, google will figure out what your content is about. Your backlinks is where you will make your money relating your content and keywords. Keyword variation is VERY important now.
 
I think it is important to have the keyword phrase you are targeting at least 1-2 times in the body content and it helps to have it in the title tags, image alt tags and URL.
 
I don't think you even need 2-3% anymore. I have posts that rank #1 with less than 1% density. I do agree that not more than 3% and not all clustered together either.
 
Not at all. Google Hummingbird took the focus away from keyword density.

You can create your primary keyword just once or twice and then focus on synonyms and semantics (related words).

For example, if jogging shoes are your primary keyword, remember to also build in related words such as sports shoes, (brand name) jogging shoes, (brand name) sports shoes, jogging gear, best shoes for jogging, etc.
 
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