OP is in right about too much power in Google hands but this is not new, they are doing it for years but that is the reality and reason why we must follow their requirements, at least for now.
Anyway, this is something that many people don't understand. It is just a matter of time when most of the shady or black hat techniques people are using every day will fail. Google is actually doing a good job if you take a bigger picture. It is not ideal, but much better than total anarchy. Unwanted and violent ads are incredible irritating stuff.
For me, this is great news. Popunders and unwanted ads are the second most disturbing thing after tube sites. And this is not new for anyone following SEO news, it was clear that Google is going after negative stuff for so many years back. People usually react when they are hit personally.
Considering that they already implemented a requirement for popups and mobile version of sites, this seems like logical next step. Personally, I was expecting that sites with popups will be punished at some point and it is totally fair from my perspective of the person writing good SEO articles, taking care about user experiences and not trying to spam people with unwanted crap.
For example, at the moment when Google announced
update about mobile and popups, I had to drop my complete plan and strategy of collecting emails with popups. Yeah, it sucks but we need to adapt.
What I've learned after all these years and constant changes that going slow and by the book is the smartest and safest way. I know that many people won't agree but it is the only way to avoid frustration and sudden drops after SE updates that will come, undoubtedly.
People running quality sites will only benefit from this and this is ok. Quality. At the end it is nothing new, Google is telling that for years: quality articles, informative texts, and value for the visitors.
Having pop-ups and non-related ads remind me to the experience of shopping peacefully while suddenly a bunch of some dirty and loud people starts pulling you by the hand to sell you something you don't want or need.
At this point, I believe that it is also a matter of time when tube sites will be hit what will devastate biggest % of the adult business and that would finally be a great thing to see and kind of a reset.