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To paraphrase, G states their technology isn't geared for Flash, other movies, etc. This is a snapshot Webcam, no video, the user must refresh to get the latest image which the cam FTPs every 4 minutes.
Is the js weather banner perhaps the 'dynamic content' issue?
Could they have denied me thinking it was video?
Or is a page that's prone to make the user hit refresh a bad candidate?
AdSense is really for content sites, not one page sites with dynamic elements such as a webcam, which is probably what the issue was. If it was a 30 page site with articles about the outdoors, with that same webcam page as one of the 30 pages, it probably wouldn't have been an issue.
the AdSense test threw up perfectly targeted local real estate & cabin rental ads
I suspect the "AdSense test" is a form that lets you enter a URL, then loads the AdSense site pagead2.googlesyndication.com with the URL embedded in the query string.
If that's the case note that it takes into account the text in the URL. The algorithm used by AdSense on a real web page calling the AdSense JS code directly relies primarily on the content of the site, not the text from the URL.
To demonstrate the flaw in relying on the "AdSense test" try a fake URL like [aspen-mountain-hotel-not-a-real-domain.com...] then let us know what type of ads you see.
In a nutshell, it sounds like your site doesn't really have any textual content that would work with AdSense. Consider building 5 or 10 pages and add some text to your main page, then re-apply.