The way that we've setup page titles, alt tags, link structures and the like are all planned out with SEO in mind. We also include a copy of the all-in-one SEO plugin with the download package, that puts the icing on the cake. (We do recommend using it with Market.)

I guess to answer the last part of your question, I think the phrase "search engine optimized" gives more meaning to your completed website.

Our template is search engine friendly, meaning that it takes care of putting the right things in the right locations, and having a good search engine robot friendly structure, so it can easily get around the site.

You'll still have to make sure that you use good keyword phrases within your titles and rich unique descriptions with good use of secondary keywords. Without you doing that part, it doesn't matter how good the template is setup.

Hope this helps.

Well, there are other things that go into getting to the top of the search engines (such as link building), however Market Theme is setup with "SEO best practices", so it's very effective.