11. ... Notwithstanding the foregoing, Google shall not be liable for any payment based on ...
(d) Google advertisements for its own products and/or services;
I've noticed Google advertising Adsense and Adwords on my site...I did NOT know that I was providing this to them for free.
Yep - I've noticed this in the terms also, but I haven't seen any ads for adwords beyond the gooooogle message.
It is one of the many things that will ensure that when a competitor does come along with a product that pays 90% of what adsense does - publishers will switch.