Agree with Neddy, James did you read the case ??
Yes I did read the article, but the thing is the negligence is mainly caused by the advertiser who is creating the ad on Adwords, not Google for offering the system for Advertisers to use as a push system. But I do agree some fault lies on the part of the people approving the creative but when you have 1000s of creative a day to push out things can get missed and this i where the problems happen.
If the businesses who have put in the complaints in regards to people bidding on their business names and getting driven to a competitors product then that specific advertiser should have a trademark block on their terms so competitors are stopped from bidding or using the keyword in the creative, I understand people look for loop holes in trademark blocks all day and will drive people to non related sites, I mean look at the AdWords arbitration days, not that I was involved in this specific methods or would I advise too.
But I do agree with Ned the money will just come from businesses who invest into AdWords and other products Google offers.
Also more training needs to be done for businesses who are trying to look for these loop holes.