In case anyone missed this. Thought this was interesting as it's a google employee talking about affiliates.
""I believe the email offers you the ability to reply and ask for reconsideration. It is just that the affiliate model is hard to market with adwords these days. Too many affiliates. Google used to give low landing page quality scores to discourage people and now they flat out disable your advertising. So I do not really have any advice if you want to stick with affiliate marketing."
I'd like to speak to the reply quoted above, because I think it could easily give an incorrect impression and lead to incorrect conclusions. In particular, Google is not disabling the accounts of affiliates because they are affiliates, nor are accounts being disabled because there are 'too many affiliates'.
Accounts are indeed being disabled - but this occurs after violation of AdWords policy and/or the Terms and Conditions - and not because the advertisers are affiliates. Neither has the giving of low landing page quality scores been 'replaced' with the disabling of accounts.
In any case, when an email reads "your ads will no longer run on Google" this is a good indicator that AdWords advertising can not be re-started. If you have not done so already, you may wish to reply to that email (as opposed to opening a new email) - though in most cases of which I am aware the original decision will stand.
Please do not think of AdWords as the only advertising program out there. We have many competitors - of which two in particular stand out as possible options for you. You may wish to explore either Yahoo! Search Marketing, or MSN's ad Center, or perhaps even both."