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He is actually doing nothing agianst TOS.
It was no AdSense hoax at all, just a hoax of how his Christmas lights worked. It is within the TOS and policies.
I think it may violate the AdSense's TOS because:
From AdSense's TOS,
5 Prohibited Uses. ...(viii) act in any way that violates any Program Policies posted on the Google Web Site
and Program Policies
Site may not include Deceptive or manipulative content
The author has put AdSense on the page which claimed:
Use the christmas webcam to view live images of a buncha christmas lights and also CONTROL them
and this is not true.
'Oh my God, that website runs Adsense, he must be rich! I'm so jealous... He's on the FedEx club and now will receive the dreaden email'
Damn... Leave the computer and the Adsense website for a few days...
So, the almighty Hulk has made a nice joke with his X-mas lights, earn a few bucks from Adsense (that would not be much, the main attraction was the webcam...) and admited it was a Hoax... Now what? You want to sue him because he was original and funny? LOL!
I'll give him credit for that :)
>>Site may not include Deceptive or manipulative content
I can't see how the site violated that. For crying out loud has anyone seen the "deception" here: Google's PigeonRank Technology [google.com]?