However the only other decent competition (YSM)has an interface that is an even bigger PAIN! And the reporting SUCKS big time! I'm still seeing stats in my "manage search" reporting that I know are not from yesterday! At least adwords reporting is close to real-time.
Kay
As long as there relatively easy ways to create revenue for yourself through click fraud it will slowly kill PPC.
I suspect that once Overture/Y open their contextual advertising to a broader base their advertisers will see a drop in effectiveness.
When you have an income in the billions from advertsing primarily (as G does) and it is estimated that 20% of it is fraudulent- you have a major problem.
And trust me, on the inside Google is very worried about it. Fraud kills advertisers' campaigns quickly and sooner or later we will see an alternative solution.
I suspect companies like Adbrite will rise quickly as they are not affected by fraud like traditional PPC is.