Heard back from G & they say the ads are compliant. I am feeling somewhat guilty though & will change them next time I work on the homepage.
Why? if the people who click on them are finding what they are looking for then you should not feel guilty IMO. The advertisers pay for targeted traffic. A link to a cat store, from a cat page is pretty targeted if you ask me
Don't feel so guilty. Even if someone clicks on it by accident, it's not like it's costing them anything but a few seconds. I'd keep it like that if it's converting for you and not give it too much thought.