I'm guessing that the adwords filter doesn't block the word gay, as it can be used in a valid way. I would guess that the ads will be rejected once someone on the adwords team manually reviews the advert. I've used adwords in the past, and run an ad for a few hours before being rejected due to grammer. There is a small time window when an ad that doesn't meet the guidelines can be live.
Gay sites aren't porn sites, but still, it's pretty weird seeing those kinds of ads being shown by Adsense.
There is clearly only one possible explanation. Google is run by gays. *deep breath* Yeah I know you all are amazed, but it is indeed true just look at this for proof:
Inapporoporiate as hell, but made me laugh. As for AdSense, they're busy being overprotective of advertisers, and are ignoring the protection of publishers. What if some kid went onto my Brady Bunch fansite, and read my article about the "jolly, gay Brady Bunch?" And then seen ads for homosexual forums and dating services. Ridiculous.
They need a tag in HTML for google to see that you mean happy rather than homosexual. EDIT: hahaha notice how the brady bunch didn't end up in the tag. Just realized the irony of that.
AdSense would cross with Wiki if these kind of new tags were to show up =) And ofcourse, I dont own a brady bunch fansite. It was hypothetical. Not that I dont like the Brady Bunch, but I dont like anything that doesn't make me money. And Brady Bunch was over.. a while ago.
not occording to them: http://www.bradyworld.com/ Fortunately, they have <non homosexual> covering their whole site, no worries.