Click Arbitrage - Good or Bad

What is Click Arbitrage?
As such this blog is for beginners as well, so first good to define what is concept!
The word Arbitrage may be defined as
"The simultaneous purchase and sale of similar commodities in different markets to take advantage of a price discrepancy."
So like traditional business, Purchasing clicks at lower price and selling them at higher price. The difference is the Profit.
This idea is in for few years and lot as been done in favor and against it. As its been a good attraction for affiliate/web masters. It harmed few big search engines as well. The topic has been hot and even few e-books been written and sold about it.

Have i seen during my surfing?
Most probably--YES. you might seen web sites full of links, search results and somewhere may be top or bottom of page mentioned as "Sponsored link'. These pages might be accessible by clicking on an attractive Ad, under an Ad block of a site that you were going through. Or a domain name was typed, it was mis-spelled or the domain has been expired---and you are taken to that web site full of sponsored links page.
Similarly you are taken to a web site with information stuff, you are looking for and it contains "Ad Blocks" may be from google adsense or other ppc providers. The Ads packs the content in a way that most chances are visitor will click one of it. And stats are if CTR is 10% (depending on content) it might be making profit.

So is Click Arbitrage bad?
Why? Even few big search engines are playing it. e.g. ask.com. I saw an Ad on google when i searched for 'Secured Loans". One of the ad on right bar was written something like it
"Search Secured loans on Ask" and clicking on it will lead to search result page on ask.com with organic results as well as sponsored links.
a sample is shown below in video....




Individuals and even companies involved in Click Arbitrage business using cheap Google listings and lead to costly yahoo link farm page.
Few PPC Ad affiliate companies like "SearchAnyway" offers full search engine pages that individuals or companies can incorporate with thier domains. It contains a Search box, like any search engine.
Visitors can search and the search results will only display sponsored link. CTR is considered high for these kind of pages.
Although searchanyway, a ppc affiliate program, is not based on click arbitrage affiliate program, but they allow it with quality traffic.
As such Google does not denies it clearly under the Term and Conditions of Adsense for Publishers. Instead they allow it but never directly.