Reuben, Have you actually checked with Google to see if your setup violates the AdSense TOS? You stated that you couldn't find anything in the TOS, however, Google will tell you definitively if you ask. I cannot remember where I ready this but I believe that Google has stated that encapsulating their code inside a javasript call that displays your code instead of theirs is a violation of their terms. In English... If you view source and see your javascript which calls adsense code as compared to seeing the raw adsense code is a violation. Not saying that you would do this however, it would be very easy to target high paying keywords regardless of content in a setup such as yours which is why I think Google forbids this.