Re the "average" users, I can remember back in the '90's when a bunch of people thought AOL was the internet. Today I have no doubt that some think that Google is the internet, or that Facebook is the internet. We know different and no doubt each of us tries to explain to non-webmaster types that search engine results are supposed to be impartial & as relevant as is reasonably possible. I always tell people, in Google's defense, that it is incredibly complicated to get it consistently right.
That's not my argument.
My argument has to do with the clear & consistent trend that we see at Google, which is to minimize or even erase the perception between organics and paid. It's purposely tricky & duplicitous, and is as wrong for Google as it would be for GM or Prudential or Microsoft or any other public corporation.