I will use the tool to pull in a lot of keywords related to a theme and group them into relevant topics. These topics will either become their own content page or will be combined with other topics to create a page. KeywordTool.io is similar to other tools out there such as Uber Suggest, which I've used for a long time, but it tends to produce more keywords and it provides search volume for the keywords.
Yes solid keyword data dramatically changes the game as far as rankings go. I have seen many tools that provide Cost per click stats and meaningless charts that confuse most users. the data Jaaxy provides helps drive “organic” traffic to your site on a consistent basis which will out perform PPC sites every time. I like how you say thinking like the end user, as I feel that way when I search. I dive into what people are looking for and it really helps drive content idea’s. I have seen great results from that.