I wouldn't really agree with that. Once you get a high PR, you can pretty much rank for anything. A PR8 travel site (for example) could set-up as page about "George Bush" or a similar competitive term and rank quite high, although this would have nothing to do with the rest of the site. You can't really say that that's violating the Adsense TOS .... IMO, that's just Google's response to the high PR. Of course, in this case it's Google's response to a "high enough" PR for the keywords in question as they are not VERY competitive. Re the fact that the site has been created purely to show Google ads ..... It's arguable! Just becaused one of their "landing pages" rank high on Google doesn't mean that the entire site was created to show Adsense ads.
Yup.. thats true. It's a bit annoying for the end user (as the other poster mentioned).. but I just want it to be within the TOS. All this adsense stuff happened much later after we hit PR6. Now it's just a matter of being within TOS and making maximum revenue. Isn't that the bottom line. The example was in the extremely high CTR of that page. IMO that could be attributed to the manner in which the ads are displayed.. towards the left of the page before the text. Of course the term it ranked for wasn't super competitive. Thanks for the feedback