tedster - 12:13 am on Jul 10, 2011 (gmt 0)
That's not an insight, in my view. That's a conspiracy theory that doesn't hold any water. In fact, it's a conspiracy theory that's been around since Adwords first launched. The only thing "new" here is the idea that Panda is designed to increase Adwords buys. And that seems way out in left field to me.
What has been happening, and not so gradually at all, is the competition for the valuable organic positions has mushroomed. And the competition for a page one Adwords ad on those same queries has done the same.
You may feel backed into a corner where buying ads seems to be your only alternative - but that doesn't mean it's Google's intention.