Pay Per Click Party Over?

First the good news. Pay per click, as it has been perfected by Google, is unarguably the Web's highest business achievement to date. Google has become an international corporate icon worth more than some of the most famous name brands of our generation like Disney, BusinessWeek and ESPN are also using pay per click to supplement their ad revenue.

Pay per click seems to be booming ... but five reasons (in bold) on why pay per click is in trouble.  I'll  take a look at each one of his points below.

1) Clutter
ularized them. Their Adsense program has made it simple for sites to add which has caused a glut of text ads everywhere you click. I see the "clutter" problem as an Adsense clutter problem that leads to a phenomenon all web publishers have dealt with ... ad blindness.
As for clutter in search results, I see this as a problem of an educated user base. When text ads first appeared in search results the average user didn't identify them as ads, thus they had a great click rate. Now only the most casual users still doesn't realize what is an ad in search results, resulting in much lower click rates. This problem will only get worse over time.

What can search engines do to combat this "clutter effect"? The answer is to make the ads look less like ads. If 3 line text ads are obvious ads, how about 1 line ads integrated within the search results that might look like this:

the question.
sGoTo.com where you could buy clicks for as little as one cent. Marketers must justify their expenditures on advertising based on its impact on sales. Will the increasing cost of text ads for most key words cause cuts in search marketing budgets?
I actually don't see prices falling any time soon. The world is competing for keywords and bidding them up as necessary. Some may look for other Internet marketing options but the world is a big marketplace and so far there is no shortage of bidders.