In the advertising world they would call this a monumental blunder. An over asessment of worth and value in the marketplace. Google believes they can cast out Publishers of their ads automaticaly without hurting anyone's feelings. Anyone who counts, that is.
Publishers with website content which is not unique or does not meet the Google "standard" will be automatically dropped. Google is being careful they say, but many site owners have already been dropped after making Google thousands upon thousands of dollars.
The Spider is Googling the sites and making the choice for them. Obviously the Pagerank, link popularity and oher normal Goolge factors are going into the calculations. This effectively takes away this means of internet advertising for small businesses.
Google Adsense is now basically dead for most small site publishers. MAny webmasters will notice they are now not receiving ads from Google on all of their site pages. Now you will understand why.
Don't worry. Other networks are already looking to take Google's place in the market. Most of these networks, like Yahoo Network Ads, Adbrite, and Microsoft Adcenter will be laughing their way to the bank at Google Adsense's expense. It will be interesting to see who comes out on top.