I appreciate that a more responsive feedback loop can be exploited by bad guys as easily as it can support good guys, but the approach Google has taken creates a greater incentive for the guy to pull his old material and create a new online identity than it does for him to correct the minor flaw in his marketing. It's easy to say 'don't ever encourage users to click on ads,' but half the appeal of niche sites like this to members is being able to have conversational contact with an individual whose work is especially admirable, or through which the member can live vicariously.
What's happening here is that a legitimate honest business model (subscriber sales for niche content, with a minor secondary revenue stream from ads) is being punished because of Google's inability to differentiate it from a dishonest business model. The huge fear you describe is a reflection of both the asymmetry between Google and the small advertiser, and of the difficulty in understanding exactly what behavior is in or out. Not everyone finds those contracts easy to read or understand, and Google is actually raising barriers to entry if it enforces them too rigidly and giving greater incentive to the black hats than the white hats. I strongly suspect that this is a limiting factor on Google's own revenue, which is stuck on a local maximum because Google itself is has a much lower tolerance for information asymmetry than it demands of its content providers.