Not entirely false, I would say. I see more and more non-techies getting tired with their search results, instinctly expecting to see a variety of poorly-formatted, extremely poorly-written, ad-ridden sites.
I believe more and more people will wake as Google pushes the boundaries of good sense. This will lead to a decrease in qualified traffic, but that won't demotivate Google -- anyone who already ran ads targeting a niche public knows that Google will burn your monthly budget, and they won't hesitate to override your parameters to make that happen.