idolw - 10:55 am on Jul 30, 2010 (gmt 0)
Google have always had a problem with quality. Since their organic SERPs are so good, people did not click on the ads enough. So they are trying to push the organic down the screen and give more space for ads. They've been trying for years and seem to be achieving their goals. I believe it will end up with only ads on page 1. Even now, ads often drive much more traffic than organic and this trend will continue.
I believe it pays more to master the PPC than SEO.