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Keywords are Inactive due to min. bid requirement

But still showing traffic

     
5:44 am on Jan 25, 2007 (gmt 0)

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joined:May 12, 2005
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Many of my kywords have been renedered in-active even before the ads started to show-up. I have been asked to increase the bid to minimum $10 or improve quality. But how is it possible that one can have such a high entry barrier, despite the fact that there are only 3 competitors for the same product type advertising currently.

Further to my surprise, the campaign is showing traffic and conversions, but the pink banner is still around.

Any advices/concerns.