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The revenues are directly correlated to the click through rates for display ads which are much more akin to what facebook is offering.

Separate out Google's search revenue and display revenue and you'll see there's a big differentiation there.

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This is true, but this is also my point. Google makes so much money because theire business of search is perfectly aligned with ads (there is almost no difference between a search result and an ad-result). Google's display ads are not as 'successful', because I'm reading a blog or doing something else than searching when I get into contact with AdSense. There is a huge difference between my friend's status update and an ad (maybe Timeline can change this).

I heard Google Plus's Vic Gundotra say the same thing at SXSW. There is definitely a time and a place for ads, and while you're viewing intimate social content might not be that time.

However... recently I've been seeing facebook ads where they are simply reshowing old status updates from my friends where they have linked/liked products, and pages. I'm not sure that reminding me of things my friends have liked and linked to isn't a more meaningful advertising experience. It's certainly not sufficient to support Facebook, but it feels like a new, possibly more valuable, kind of ad.

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