Rosalind - 2:38 pm on Apr 3, 2009 (gmt 0) To be fair, I haven't looked into the Starter Edition, so my comments are all about regular Adwords.
I agree that it's too complex, and that will tend to put off a lot of advertisers. It's just not worth the hassle if you have a relatively small starting budget and little time to learn the ins and outs of it. I can't picture the vast majority of mom-and-pop type businesses taking the time. Time is money, and it can take much longer to spend £50 on Adwords than the 5 or 10 minutes it might take to post an ad in the local paper. The ROI might be worse, but when you take into account the time spent, the paper wins out almost every time.
To be fair, I haven't looked into the Starter Edition, so my comments are all about regular Adwords.