Yes, I agree, too that usuing too many ads is somewhat a waste. I think the click through is higher when you limit the ads. This way people are served highly targetted ads and they might click because it is relevant.
If they see too many ads, they may just say, there is nothing on the page, even though you have good content.
I got the same report you are talking about and mine basically says that I am filtering too many competitors. Well the thing is the ones I filtered were not competitors - they were scams - and I have no intention of making any money good or bad off scams.
I want my users to have a positive experience when they come to my sites and I don't care if I lose money by filtering the junk.
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