You do have other options besides Google: http://www.feeddirect.com/ http://www.pheedo.com/ http://www.feedburner.com/
I've been thinking on this more and more. It is technically possible to put adsense in an rss feed by simply adding the html and javascript code into the description tag (don't forget to entity encode special characters like <, >, ", etc.). I just read the TOS again, and they only mention RSS once, but not in the sense of banning the ads from feeds. I'm betting they would be irate if I placed my ads in an rss feed that other people used, but what if it were a private feed that I used to update another website I owned? I don't see how/why this would violate the TOS so long as I didn't display more than the maximum allowable units/ads. I guess I'll have to ask.
Like pulling teeth... Just a short explaination: Someone in a forum (not DP) made a post telling people to click on ads on my site because I offered a useful bit of software. A few weeks later, I got an email from Adsense telling me that they were going to cancel my account because of it. Neither Google nor Adsense were mentioned in the person's post, and I wasn't even aware of the post until Google contacted me. If it weren't such a pain, I would have switch to Yahoo ads long ago.
Hrm...sounds like their answer is basically "Not unless you have an AdSense for Feeds account, which you can't have yet". Nice to know it's in the works, however, so I suppose that hope springs eternal. Sorry to hear about your tribulations, by the way - something I worry about every day... Sam
I've seen someone use the adsense for feeds in their RSS (they have about 6600 subscribers according to feedburner) and the ads look very nice. He complained that he didn't get a very high CTR though and ended up ditching the adsense for feeds program.