dvduval - 5:36 am on Jul 6, 2010 (gmt 0)
Google makes a lot of money from selling those ads on the right side of search results. Don't you think that it is in their INTEREST not to show good relevant results? If they show bad results, chances are people will click on the ads.... What do you think?
It is obvious their recent changes make ads take up more real estate. The day they make the mistake of having a desire to get more clicks on ads than on organic results is they day they begin a slow decline.
While they are clearly the master of search now, what is takes to create a powerful search engine is become increasingly known and possible. There may not be many strong contenders on the field now, but when other engines start to crop up that provide better results in certain ways, people will choose what works best for them.
Having the ads take more space clearly shows they have a desire to entice more clicks on non-organic results. Will that work long term? Time will tell.