Matt, I think the main problem (having seen what it looks and feels like on the receiving end) is that Google's solution and treatment of the site owner is, for lack of a better term, rather violent.
Put yourself in the shoes of someone who is not a scammer and is trying to do a good job. Perhaps someone how is learning the ropes. Getting hit with an unilateral, violent and --for all intents and purposes-- permanent action such as seems common in these cases can be devastating.
I'd like to relate a case that I witnessed that was truly perplexing. It involved about 200 domains that were registered with GoDaddy and placed in their "cash parking" program.
They were there for months with no issues whatsoever. One day, the domain owner realized that this cash parking service was Google AdSense with GoDaddy taking a bite of the minimal action. So...he moved all the domains to a product called "AdSense for Sites" (I don't remember the exact name). This services was marketed by Google as a place to park your domains and earn some money through advertising that Google would automagically place on these domains. Same service that had been on these domains for ages through GoDaddy.
The transfer went well and all domains were accepted. No problems. The domains go "live", if you will, and ads start showing as predicted.
Two days later the account is cancelled and the domains are taken off the program citing "suspicious activity". The irony is that the sites --and their content-- were handled entirely by Google through this "AdSense for Domains" product. No self-clicking activity took place whatsoever. No nefarious activity of any kind. This person was far too busy with real business to go around clicking on ads across 200 domains to make $0.25 at the end of the day.
This was simply a transfer to Google for the same service that Google had been providing through GoDaddy for many months, years in some cases.
There was no recourse. No way to speak to anyone. No way to even try to understand what this "suspicious activity" was all about. The account was banned, closed, done...forever.
Now, here's a person who had plans for legitimate and valuable real sites to be launched on some of these domains later on. The whole experience scared him to a point of simply rejecting the idea of doing anything with Google if he could avoid it.
We had no way to provide any kind of an argument to the contrary because of the violent and totalitarian nature of the cutoff. Who would want to do business under those conditions?
The fact of the matter is that AdWords/AdSense generated revenue could evaporate overnight and with no recourse whatsoever. That's a tough pill to swallow for anyone who is a legitimate entrepreneur looking to build value and make some money or earn a living through their efforts.
Scammers are a different matter. However, you seem to treat both groups with the same hammer which, in my humble opinion, is not right.
I now have to advise anyone we work with that any income that relies on Google for either lead generation or direct income (AdSense) has to be treated as though it could evaporate at any time and for any reason without any real opportunity given to restore it in a timely fashion. Without that caveat on the table I couldn't personally advise anyone to use your products.
In a normal business one would engage with ones vendors in order to resolve issues in mutually beneficial ways. In this case it is a one-way street with violent and severe consequences for your customers and partners. That's what you have to fix.