Yep, they're posts just get shrunk so you don't have to bother reading them. Try it, it's completely reversible. It has the draw back of making threads difficult to follow sometimes thought (imho).
In this case I thought it made perfect sense. An "adsense made site" would be one like the silly sites you see made up entirely of adunits to look like a page of results or something like that. A bit like the domain parking pages really.
No one knows what the hell he's talking about most of the time. Don't worry much, he's a local forum troll who likes to piss people off to get the attention he obviously doesn't get at home.
As from my point of view, google is giving much price to those ads which are merged within the contents and they look like natural links
It might well happen if the well-blended ads convert better than more conventional or contrasting ads.