What gives? This is making my CTR look really pitiful.
From Google Help:
Could a low clickthrough rate on content affect my ad position on search pages?On a busy content page, an ad has to compete more to get the attention of a reader than it would on a search page, so content CTR is typically lower than search CTR. It's nothing to worry about, because content CTR does not affect the ranking of your ad on search pages.
If you select the "Summary Tab" in the AdGroup report, it should confirm this.
You can opt out of showing in the content network, but I believe it is all or nothing (i.e. the opt out is across all your adgroups).
Personally I welcome the extra traffic, but it can distort the statistics a bit and it can come ond go very quickly.