I'm seeing more and more advertising like on jk's blog here (see the double-underlined words? They pop up as ads).
I don't mind this as much as I minded SmartTags when Microsoft was attempting to do them (before I was an employee I argued voiciferously against them, along with many other people in the community because we didn't want anyone to be able to use our own words for doing this style of advertising). Choosing to do it on your own blog only gets rid of most of my objection. I still don't like these kinds of ads, though, cause for someone who doesn't know the Web very well you can't tell these are ads at first.
I do wonder, though, whether these kinds of ads pay off for bloggers more than the AdSense style ads?