Thank you for the lesson in ethics. Since you pay google money for their adwords program maybe you could contact them about their ethics?
Type "tracfone" or "virgin mobile" into a google search. The very first clickable link is a adword for that company, directly below it is the actual link. People click on the first link and guess what, google makes money. You seriously think google can't check the first serp result and see that it matches their adwords result? They are, according to your definition, thieves and trying to steal money from their own adwords customers, and you support them. Glass houses.
If google's adsense model has a flaw you should talk to them not waste your time complaining to me about it. Even if you changed my mind it doesn't make the problem disappear, does it?