Well the method behind it would certainly make some decent $$$ however, for the most part, 'mainstream' webmasters are pretty dumb when it comes to making money, they would rather, as you have seen in your example, send their traffic to something that is only going to yield them pennies per surfer.

However, coming from an 'adult' background, many of us actually do understand the importance and VALUE of our traffic.

Going back to the example you used, Teddy Bears, im sure that is a wide enough reach of surfers / children to yield a reasonable profit from Adwords however, by cutting out Adsense completely you can realistically increase the CPC (Cost Per Click) revenues.

Amazon, ToysRUs, ClickBank, CJ, DarkBlue, etc etc all have programs that pay upwards of $1 for each lead / sale you would generate from your sites.

Why make pennies from your 'teddy bear' traffic when you can make dollars?

Regards,

Lee