Broadway - 8:32 pm on Apr 23, 2013 (gmt 0)
I've been shedding in-text advertising.
I think user experience will only play a bigger and bigger role in your Google rankings as time passes. For me, there is no question that their presence degrades the user experience (and detracts from the appearance and usability of the page). And of course, this ultimately gets reflected in your website's stats (bounce, time on page, etc...).
I've spent a lot of time revising page content, and on every page I work on that I see them, I find them quite offensive.
I'll also say, in-text advertising has never come close to paying me what Adsense does. Yet the real estate that those ads occupy couldn't be more prime (right in the center of the content, right in the center of the page). I personally feel that when using them I'm giving up way more than I'm earning. (In terms of visitor first impression, website reputation.)