I actually have no problem with penalizing a site for too many ads...it is an endemic problem. But google has to be fair and put forth clear/objective guidelines that let you know what is allowable and what is not. We don't have that here... Does this mean too many sidebar ads? 34.547% of above-fold real estate on X resolution is taken up by ads = penalty? Too many in-content ads? Too many popup ads? Do 5 text links that take less room than one skyscraper hurt you more or less? Does dead-space hurt here (penalty could be more about lack of organic content above-fold)? If google comes up with objective guidelines that clearly lets you know if you do X with your ads within y boundaries, you're ok, then I'm fine with this policy.