So for those wondering, the 2 teams, Search and AdSense, do seem to be at odds about what's best for them and it appears what's happened to many with Panda is making the AdSense team take notice.
How do I know this?
Got an email from AdSense, wondering where all that weekly money went we used to make together and if they could help.
I wrote a polite reply, sure, you can help, why did your Search Dept. trash my traffic? Then I nicely explained while I was waiting for Google to figure Panda out, I decided to finish the job and go Cold Turkey (no AdSense) while I was doing some redesign work.
Now some might say that if my site went down in rankings someone else would float up and take it's place with AdSense. Not exactly the case in my niche of vertical directories that target a specific group of sites that have never run AdSense nor do I suspect ever will. To add injury to insult, not only did Panda drop my and similar sites, but those sites I used to promote are now promoted to the top. What this means is all the sites at the top of search rarely have AdSense in the top 10 SERPs at this point, maybe 1 site if any. So AdSense will definitely take a hit and it's obvious there's a backlog of advertiser revenue sitting there with no place to go at this point. If that wasn't the case, I doubt I'd have been contacted.
Likewise, think about how Google has also been promoting branding over affiliates in the SERPs which will also impact AdSense as affiliate sites get pushed further down.
Interesting turn of events so thanks to Panda we're watching the revenue center of Google blink for the first time in my memory due to the actions of the search team.
I suspect some level of rollback may happen if the revenue impact is as severe as I suspect.