pbradish - 9:56 pm on Mar 4, 2013 (gmt 0)
Short answer: Yes, you should still bother with Google Adwords.
When set up correctly Adwords is extremely useful. It may be more expensive than it used to be but in many markets the ROI can still be pretty incredible. That being said, you have to be tracking your conversion data. This is an absolute must.
Also, as far as I know Google's stance is that paid ads have no relation to how you rank organically. That being said however, having an organic result and a ppc ad on the same page is excellent branding. There's also other things that you can do with your ppc ads now such as reviews, site links, phone numbers, etc - which make it much more appealing.