If you don't like paying Google, then buy their stock and make some money. I own 50 shares myself.
As far as people not knowing the difference of organic results and paid results - THEY DON'T!
I did my own informal survey and 95% of people had no clue there was a difference. I even had a heated debate with a 20 something PC repair guy who said you HAVE to pay Google to get listed anywhere on the page. Regardless, I spend about $500/month on my Adwords campaign, even though I rank in the top 3 for dozens if not hundreds of niche keywords. The good part is that Google is basically paying my ad costs through my use of properly placed Adsense ads. I stick to only 1 ad per site page - 3 on my blog.