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It's been a while since I've messed with an AdWords campaign, but I do remember that AdSense for search tended to convert plenty better, because you knew exactly what they were looking for.
Pretty much all of my traffic comes from search engines. SO, if there were a way for me to pass the referrer on to adsense when a page is viewed, then the ads could be shown for that search, since that's what they're after anyway. If it's some odd search, then show ads for the content of the page, or some hybrid of both.
This would probably get more advertisers to use the content network, and pay more for it (make an option to only show ads on the referrer-passed pages), because the ads are more targeted.