Welcome to WebmasterWorld Guest from 22.214.171.124
Even so, it may have affected resource decisions. At the organizational level, did the specter of losing tens of millions in ad revenue had something to do with why Google waited so long to start to address the problem?
At the organizational level, Google is essentially chaos. In search quality in particular, once you've demonstrated that you can do useful stuff on your own, you're pretty much free to work on whatever you think is important. I don't think there's even a mechanism for shifting priorities like that.
We've been working on this issue for a long time, and made some progress. These efforts started long before the recent spat of news articles. I've personally been working on it for over a year. The central issue is that it's very difficult to make changes that sacrifice "on-topic-ness" for "good-ness" that don't make the results in general worse. You can expect some big changes here very shortly though.