buckworks - 10:31 pm on Jun 23, 2013 (gmt 0)
My quality score is 4/10 for my keywords
Improving the quality score is the first thing I'd advise you to work on. Test some new ad copy, tighten up your targeting, test different match types, strengthen your negative keyword lists, etc etc.
Based on Google's way of thinking, esoteric seems also to mean low quality
Nope. The problem is that users aren't responding to your ads as well as the algo expects. Either your ads or your targeting need some work.
A better clickthrough rate is the biggest factor in improving your quality score. Even for something obscure you should be able to achieve 6 or 7. That will make your ads more competitive even if you don't raise your bids.
Have you tested to see what happens if you do boost your bid to the amount that's being suggested?