When Google's webspam team takes action on websites in our websearch index, we can pass that information on to the ads group so they can check for violations.
Nice to know that one fallen domino may cause you other problems. As for the site it's ONE major mistake, other than not implementing a proper word filter and 404 system, was not adding mashup from other sites besides amazon. Google hates the site as is, obviously, but add items from other services and you get, well, a copy of Google's shopping pages.
and the links/keywords are duplicate content.
I think that was the red flag. I'm strongly believing that Google has a "duplicate content % rating" assigned to all sites, perhaps even several independent ratings (one for link anchor text, one for non-link text, one for sitewide template text, one for hot zone text etc). Affiliate sites often repeat link anchor text and so rate poorly without additional text.
Check your anchor text and NO, just switching the word order will not help anymore.