I own the domain name www.cheapwebsitedesign.com.au
I haven't done anything with it except put a glorified "coming soon" type page up with a link to my main site. And it doesn't rank in Google at all.
About 12 months ago I got a single enquiry based on it, for a small web design job - must have been from a typein i'm guessing as there is no way anyone would find it. About a $500 job, but hey it's paid for it's regfee a few times over!
Fast forward 12 months, and a referal from this client has become one of my biggest clients ever.
Cheap is cheaper than discount - but if you can service the client in a way that still makes you money, there is nothing wrong with that.
Re your domain, i'd be a teeny tiny bit interested, but probably not enough to make it worth your while, i'm VERY tight with the purse strings at the moment. But if you are desperate to offload it for cheap, let me know!