First off, if you are in competition with the big boys and trying to out rank well known businesses and other Websites that has more resources with masters in their field, then what is wrong with you? Do you think that trying to match wits with things like Amazon, Ebay, or other power houses is the right choice?
So this hole thing is who you are trying to compete with. You don't compete with Google. You stay up to date with their algorithms and know what it is that will start getting your rankings changed.
If you are even considering using Adwords and have the budget to work with, Know this. The competition is out for blood. They have people in the back ground that will do nothing but click on paid advertisements in the area of interest just to drive your cost so high that you have no choice to back down.
Adsense: never heard of anyone getting kick off if you follow the rules.
I use Adsence on a few Blogs and my main Website and the money just keeps growing in the background.
I don't or will never buy traffic or need to. Just to be clear, For the last 3 months, I almost wish the traffic would slow down a little.
Now lets get something straight.
If you are talking, and this subject is about Business then affiliate marketers are for one reason. To advertise the business that they are promoting. They are aloud to earn to advertise for the main Website. They are building that business up and building their rankings. They have nothing to do with Google or any other search engine as they have no access to the SEO that is already implanted in their Affiliate site.
Another point of interest you mentioned competing with Google.
Only search engines are in competition, not Website owners.
Search engines is the core of all activity on the internet and anything you do needs to stay with the growing of all changes.
Business are real and owned.
Affiliates are not business owners just advertisers for them.
So , before we talk any more, are you talking
Business owners or Affiliates.
They are not the same.
Here is one more before I go, and really I do have to get off my butt today.
There is this thing I see around here all the time and it reads: "these are the tools you need to be successful online and gives a list hope you will sign up for them.
I went throughout them and guess what. I don't need or use any of them.
So why am I, and my Website successful?