I know you are jokingly talking about the snitching but I think that is actually a point to talk about. Reminds me of the "stop snitching" t-shirts. But who does that benefit? Yup, those that are abusing the system. It also somehow brands the person who "snitches" as acting in some immoral way by "tattle telling". Sort of takes me back to grade school.
My main concern is with sites that are click farms, have absolutely no content, or encourage clicks. The blatant violations and easy calls.
The webmasters who want the system to work and at least put in some effort get to do what for the abuser? Bend over? "Here, I'm going to not play fair and if you say something about it.. you're the bad guy!". Sounds like someone's playing the b*tch part.
The relationship between the advertisers and those showing ads is a symbiotic one. When the advertisers loses money due to abuse this translates into less ppc for those that do follow the rules.
The real issue isn't really about google, it's about where the money comes from to pay for the clicks.. the advertiser. Google is just a proxy for them.
I think that if we as webmasters at least somewhat keep an eye out for the advertisers it will benefit us in the long run. I'm not the advertisers mommy or google's mommy but I think taking a blind eye to abuse just ends up meaning less money for us.