For example, is it OK if I use the keyword "good reading" for the landing page "Amazon.com"? Does Google has strict regulations on this? Will they disable my keyword and ad if it does not directly relate to each other?
Any experience on this would be appreciated!
Google requires keywords must directly relate to the content on the landing page. Is it OK if I use keywords that does not directly relate (but indirectly relate) to the landing page.
Google does have such a requirement, but it's very loosely enforced (and some arguments can be made that it's not enforced at all). I've seen plenty of keywords that aren't related to the landing pages at all that are approved by Google.
The trick is to making sure you can maintain a good CTR rate so your ad doesn't get disabled (and of course, the ad must be truthful - IMO, Google is more likely to reject your ad than the keyword). Then you need to make sure your ROI is high enough to justify the spends on those keywords.
The question isn't if you can get a good CTR for a keyword that's totally unrelated to your site, the questions will come when you're paying Google the bill for those keywords, which didn't convert at all - then you'll start rethinking your stratedgy.