Personally, when I do a local search query, seeing short listings on a map with ratings and a phone number is pretty much exactly what I was looking for even though it doesn't meet the author's definition of 'organic'.
Update: seconds after posting this, I refreshed and the full-bar ads went away. Have they just fixed the results?
Got the same behavior searching "Palo Alto dentists", though the number of sponsored links started lower.
Nope, the GoogleMind probably crawled the site, and upon discovering your dissatisfaction with the ads, updated your personalized results appropriately ;)