Agree on all points.
The issue can be partially solved by posting a statement that is very visible along these lines:
"The following ads are provided by Google at random to help pay the bills. We do not specifically endorse an ad."
Or place a box outline in color around them so that folks realize that the ads are NOT the site's specific endorsements.
Most ads appear to be site sponsored; ergo, people click on them. For the veterans amongst us, no issue; but it could be a newbie that falls.
Make the PAINT.NET DOWNLOAD button stand out; eliminate the possibility of confusion.