It seems the only model he likes is Google's. I have to agree, targeted text based ads seem much less offensive and annoying to me than all the crazy eye spam that you get on most web sites. In fact it is these ads that finally drove me away from hotmail as my main mail account (after nearly 9 years of loyal use). It appears to me that Hotmail is 80% financed by dating services. That is totally annoying to me.
So Google is building a empire of free stuff, powered (at least at the moment) solely by advertisement revenue. This is like the TV and Radio of yesteryear – except that the ads are relevant and so far un-obtrusive. I wonder if this model can sustain it though. I’m not sure that everything lends itself to targeted ads, but I could be wrong.