Oh, how I truly feel the pain, understand the frustration of any discussion with Google's customer service. After similar experience, this is what I have to say:

So why can’t Google just sell ad space for x-dollars like a newspaper does? You know, your ad appears in the indexed category and/or subcategory of your choosing for x-number of days, hours, weeks.

A searcher could browse paid ad categories much like he would the want-ads section of his local paper, or he might query all categories by typing keywords that would trigger suggestions, e.g. that 17 matching terms are found in this category, 27 in this other category, and 2 in this other category. (A general search might trigger such an announcement also.)

If they simply cut all the cr....
Wouldn’t the playing field be even for all sites - new or old, rich or poor?

Wouldn’t that eliminate all the click fraud?

Wouldn’t that get rid of all these bogus sites full of ads and not much else?

Wouldn’t that eliminate all the confusion about keywords not performing to Google's liking?

Wouldn’t that eliminate the need for the (obviously) outsourced annoyingly useless, seemingly uncaring customer service?

Wouldn’t there be a whole bunch of happy repeat customers?

Wouldn’t that just be the right thing to do? You know, like living up to their moral platitudes?

Just a thought...