Before advising, look at whom this update has impacted the most. It has affected many moms and retired folks, who post their recipes online or do some blogging for small returns.These are not the people who can start a SE during the fag end of their lives.Google might not have intended to harm them but they know that while addressing other situations, these people will also be destroyed, as their recipes get easily copied by big "How Tos"
indyank, I've read both sides of the arguments but can not help but empathize with yours.
As someone pointed out, yes businesses fail; but usually not within a matter of minutes and not without some indication that they are headed in that direction giving you time to try to prepare.
I'm a retiree and, thus far anyway, have been hurt by this change. There was no warning really, just woke up a few mornings ago to learn my traffic and income dropped precipitously. I'm used to seasonal fluctuations and those due to a poor economy, but have never experienced anything quite like this in all the years I've used AdSense.
I've played by all the AdSense rules and terms; worked hard for years writing quality content for many hours each day(some of my content appears in training manuals of a few large companies, etc.). AdSense folk even contacted me in the not too distant past for reasons which would lead anyone to believe they thought my educational site offered something of value to others.
I agree with those that say it's too early to judge how things will shake out for us little guys and gals. In the meantime, Google has me shaking in my boots.
[edited by: shallow at 6:45 pm (utc) on Feb 27, 2011]