Hi... currently my traffic has been going up, but I noticed that it doesn't reflect on my adsense earnings. So I experiment on whats the best for my blog.. and this is the best combination I had http://topten10most.blogspot.com.. well as you can see its not that pleasing to the eyes but it works. Should I go for beauty or adsense earnings? I'm aiming for longterm effects.
Promote your site well and then choose a niche that is very selling and most of the people looking for it.
if your site and traffic gets accepted in adsense, than thats best choice you have, but I would say one should keep multiple options for earning from a site, instead of just one, as if you get ban or removed, so you may have other options in hand
I just took a look at your blog, to be honest I would click away as the design is too busy and the first thing I notice is an ad.
In my opinion, take the better converting of the two sites and run it against a new site that you hope will get better conversions. It is all about testing new sites against your money site(s) until you get better results. Once you do, rinse and repeat.