I haven't been banned, but AdSense is incompatible with my preferred mobile framework (jQuery Mobile) without some ugly (and possibly TOS-violating) hacks. Other mobile frameworks are in the same boat.

I'd also be interested in alternatives (ideally, Google would fix the AdSense code so it works, but people have been asking for that for a while).

Having temporarily been denied Adsense earlier this year (subsequently reversed), about the only option I would recommend is well-targeted affiliate marketing. Clickbank (in my case) ended up making rather more money than equivalently-placed Adsense ads :)