Landing Page Quality Score Implementation Coincides with Huge Revenue and Profit Increases for Google. All those who were concerned that Google was going under because of the quality score rules implementation can breathe easy today: "GOOGLE'S PROFIT NEARLY DOUBLES and revenue Grows 70% in the third quarter as online-ad sales remained strong. Shares rose 7% after hours"
I think shoemoney's comment on his blog a few days ago is dead-on. He says that G isn't necessarily trying to stop arbitrage, they just want a bigger slice of the pie. I now see AdWords as the small-town police chief who lets the local whorehouse continue operations--provided he's bribed well enough. So G rejects ads because it doesn't like the landing page. Oh...but if the advertiser forks over an extra $5 per keyword, suddenly the landing page looks mighty good to them. My thought: If a landing page sucks, shouldn't it suck at any price?
Google defines sucks by how much money it makes for them. So at a certain price, you are right, it doesn't suck for them anymore...