It's quite clear to anyone who has used Google over the past decade that:
1. When you search for anything remotely commercial, your first page is essentially all ads, especially on mobile. It used to be possible that, if you were a site but had the top spot in Google for a commercial term, you had a great opportunity. That is no longer the case now, in that you are forced to pay "the Google tax", because there will be 4-5 ads above your primary search position if you don't pay for an ad.
2. Over time Google has made the distinction between organic results and ads much less clear. All you get now is teeny bolded "Ad" text in the upper left corner, everything else looks the same.
These are valid criticisms. Saying "Google critiqued the practice of displaying ads above search results" is simply not true based on the poster's own linked screenshot.