No, it was a targeted ad for a general consumer product.
Of course, but many other ads are targeted by topic. An ad for amateur-radio antennas, for example, will run in QST Magazine because that's the #1 ham magazine. Demographics are irrelevant: It doesn't matter if the reader is 18 or 80, male or female, making $20,000 a year or $100,000 as long as he may be a prospect for a triband beam.
Don't forget Google's new "image ads," which are available only on the content network, not on Google SERPs. IMHO, these were introduced not to give more choices to current PPC advertisers, but to sell contextual advertising to mainstream advertisers and ad agencies.
I'm all for advertiser control, and I don't think there's any doubt that Google will have to--and will--offer more advertiser controls in the future than it does now. AdSense is a first-generation product, and we can expect to see evolutionary changes and product extensions in the months and years ahead.