Swanson - 12:08 am on Jun 10, 2011 (gmt 0)
"Quality is in the eye of the beholder"
That is a great statement that you need to remember - it's only quality if Google thinks it's quality!
Time will tell, however I don't believe that the ads thing makes too much difference.
I say that as I have sites with ridiculously bad ad placements (adsense) with over 50k visits per day, also with thin content.
I think there needs to be other factors that affect the situation for the ads to be an issue.
I do think pagerank and authority does help as all my sites that are fine are PR6+