Also, if you want to see how many pages are optimized for the exact keyword match, enter your keyword in quotes into Google and see how many search results.
There are still some useful info you can glean from the Google Keyword tool, but it does not pertain to competition as webdev mentioned, it has to do with the demand. The search numbers that the Google Keyword tool shows tells you about the demand for a particular keyword.
Sherif
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Afraid not. You just gotta use all these different tools and methods to get an idea of things. That's the nature of this business. Never rely on one tool and never buy into those over promising do-it-all one tools.
You can also check the PR of the web pages on first page of the results. If the first page contain pages from wikipedia or authority sites, it would be a difficult task to compete with that keyword. Competitions with low PR sites and web pages from article directories would be easier to compete with.