balibule
Not entirely true. I have a Web-design-studio site with the domain "fleava.com", but when you type "Bali Web Design" on google.com it will show up on page 2. Just the matter of technique.
And the funny thing is that you are exactly one place higher ranked than baliwebdesign dot com which exactly matches the search. Why would they not come up on top of this search?
BKT
There could be many reasons why baliwebdesign dot com is not coming up on the first page, I suspect the main one will be not having as many high PR back links like Lewis's. Having your keywords in your domain name doesn't automatically rank your site higher than everyone else's but it plays a huge factor in getting it up there.
Also ranking a website with the keywords "Bali Web Design" won't be anywhere near as hard ranking a website with the keywords "Bali Villas" There's so much more competition out there for those keywords.