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Adwords banning accounts for the wrong reasons is nothing new. I have a guy who recently was banned for the worst reason ever.
he had a campaign running in 2006 - it was legit.. everything was fine. He stopped the campaign let the domain expire and moved on. Just a few weeks ago google emails him letting him know that the content currently on that domain he doesnt own anymore is in violation of googles terms of service and they killed his account.
So not only was the site not active on google adwords anymore - but the guy has no control over the current content of the domain that got it banned.
Emails to google - all canned copy and paste response. I don't think they have a human working within the adwords department.
Alot of guys i know are moving towards bing now but imo nothing beats google adwords still
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