Please Critique My Game Plan

I am thinking of starting a wordpress mu blog and using the subdomain feature to start niche blog sites according to the niche report I get daily from Niche A Day.

I'm thinking i would monetize with adsense initially, then the niche's that perform well would become candidates to build separate authority sites.

I was thinking of this plan for creating content for each niche:

- take the top 5, bottom 5 and middle 5 keyword terms, which are ranked by number of searches and create 1-2 articles on each keyword. Use one for site information and the other to submit to directories.

- Create a squidoo lens for each niche and start with 1 500 word article, 2 youtube videos and an RSS feed from the blog I started before.

- add content to each blog at a rate of 2-3 posts per week for the first couple of weeks to build content

- submit articles 1 every other day to Ezine, GoArticles and Article Dashboard

I question my keyword selection though. Should I target more of the less search for terms, IE long tail keywords? I am also using Keyword Elite for this project and for anyone who uses it I was under the impression that a high KEI is ideal for a keyword, something above 50? Is this right?

Thanks.

Bruha