Is there anyway to create a separate ad for each keyword? Within the same Ad Group, that is. I know about the randomly rotating ads options, but that's not what I mean.
No. You can set separate CPC's and destination URL's for keywords, but not separate ads. You need to put them in their own ad group.
...one thing you could do to save time is to use dynamic keyword insertion...so if you sell blue/green and red widgets {KeyWord: Generic Headline} Buy {Keyword} etc etc So you could get Red Widgets Buy Red Widgets blah blah blah However if all the keywords in your group are distinctly different, then it makes sense to make an ad for each keyword (it takes time, but in the long run, a well planned campaign pays for itself). The other thing to consider is that sometimes using dynamic keyword insertion as bulk advertisers like Ebay do is that you can get nonsensical creatives. If you split your keywords intelligently into different groups, then running the same creative for lots of very similar words makes sense. Have a look at your keywords again and consider if they are currently arranged into the appropriate adgroups.
Yes, I find that dynamic keyword insertion places a real restriction on the keywords you can use in the Ad Group.....as good as the Windows Adwords editing client is....it's still a bit of a headache setting up and managing stacks of ad groups for an identically themed topic.