Tropical. You hit the nail on the head.
So when is content not a content site? Ahh when it's a sponsored search. EXACTLY the traffic partner that I was trying to avoid. And the difference it? One doesn't have content but just a search.
They got back to me today and said the following
We researched the site you gave us and they are showing our Sponsored Search results when you type in a search. This is different than Content Match. With Sponsored Search you will type in a search term and Sponsored Search results will populate. With Content Match your listings are shown next to relevant material on our affiliate network, and your links are shown without a search. Content Match listings are usually shown in an "advertiser link" box somewhere next to an article on our network. You received a referral to your website because someone on somesite.com typed in one of your search terms and your Sponsored Search advertisement was displayed. This is Sponsored Search traffic.
They are losing it. Besides this I'm competing for top spots with Adsense sites adverstising on Yahoo PPC. Those sites have my add showing anyway so why don't I just let them win. They show my ad and Google gets my extra dollars. Smart move Yahoo. Google must be just snickering at this developement.