LifeinAsia - 7:36 pm on Jan 23, 2013 (gmt 0)

But I don't understand how increased revenue in Adwords cannot cascade down to Adsense publishers? The math is illogical.

Actually, it's quite logical if there are more publishers. The pie (AdWords) may get larger, but more publishers means each publisher's slice of the overall pie may be smaller.

Given the minimal requirements to use AdSense, there's almost no barrier to entry for new publishers. I suspect the number of new publishers each day far exceeds the number of publishers that stop using AdSense each day.