Shatner - 11:20 pm on Jan 23, 2012 (gmt 0)
Having read through all six pages of this thread, I can say with a degree of certainty that everyone whining about being hit... deserved it.
I don't see how anyone can have a problem with this update. We've all known this was coming forever. If you've been paying any attention at all you've already adjusted your site to fit these factors.
It seems to me you're fine with two ads above the fold. If it's a 728x90 in your header and a 300x250 in your right column next to your content, you're good.
Any more than that, and you're in trouble. That includes people who put ads IN the content.
All of that has been over for a year now. We knew it was a factor with Panada. A few people were lucky and kept doing this and yet dodged Panda anyway. Well you should have made changes, because now you're caught.
It's obviously bad user experience and this makes total sense.
Google isn't saying no ads, just be reasonable.