CircleID

Yay.  At least some domainers are going to find out how a Days Inn and a Wendy's look like, rather than the Marriott :)

About time.  Now if only yahoo overture would do this as well, let's see how fast this bubble bursts.

Domain traffic, like all web traffic, varies widely in quality. Many advertisers benefit from direct-navigation traffic, and will seek out ways to buy PPC in the space, even if it requires a more granular bidding model than aggregate Adwords bidding. The real problem here isn't just tasting, but the prevalence of junk arbitrage to parked pages, which hurts the quality score of all domainers parked on a given provider. Quality traffic is what advertisers seek, and true direct-navigation properties will find a way to realize this value beyond Adwords. While I agree that further targeting benefits advertisers, it's important that we don't aggregate all domain traffic into the same category.

I've heard that in the next six months, both Google and Yahoo plan to offer advertisers the option of not advertising at all.  Woo hoo!

it’s important that we don’t aggregate all domain traffic into the same category.

I believe the advertisers will figure that out in short order, given the option to include or exclude domain traffic. 

If you sell boxes and don't want your ads displayed at box.com, that's fine.  But other folks selling boxes will have their ads there, and you'll certainly be able to see if the ROI on your PPC dollar goes up or down.