Welcome to WebmasterWorld gburg.
>>I was pretty surprised to find out that the minimum bid is not 0.05c.
All the information on the minimum bid requirements is contained in the AdWords Select FAQ. I'm not sure what you read the gave you the impression that the minimum bids were only $0.05.
There are certainly situations where the CPC program works out to be more than Overture, however, there are also many situations where Google's system works out to be much better. With Google's price structure, your bid will automatically be lowered as your clickthru rate increases. If you are running ads for a highly competitive phrase, you will often find that your initial bids will start out higher than Overture, but over time, they will drop.
We've recently seen a keyword phrase that usually runs over $10.00 per click at Overture drop down to just under $5.00 in Google's program.
Another benefit is a high clickthru will help you maintain a steady top spot. With Overture, we have to rebid constantly to keep the ad in the partner distribution. Even with bidding tools, Our competitive ads tend to spend more time on Overture's site than they do on the partners sites.
At Google, that doesn't happen. We stay consistantly at the top, and we pay half the price.
There are many similarites between the two programs, but there are also many differences as well. The key is to figure out which one works best for your particular situation.