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seems to be a pre-emptive strike against microsoft's adcenter.
update... I talked to a rep at Google. He said that it may be taking some time for this feature to be rolled out to every Adwords account.
I still don't have the demographic site targeting option showing up in my account as of today. I have a client who this would benefit, but it doesn't appear that Google is going to fix the problem.
I guess I just wait.