I'm sort of confused. That list of yours is a bunch of stuff that (at least not generally) Google doesn't advertise. So where does the "only benefits Google and the peddlers pushing the dodgy adverts" bit come from? Seems like you're only angry at the peddlers. What did Google do?
If they are going to spend a million man hours of effort playing wack a mole with content creators, why haven't they spent a tenth of that effort keeping the ads they get paid to run safe and clean? Easy. Poor search results reflects poorly on them, when they put a dodgy ad on a site they get paid, and the site gets blamed.
I think perhaps you're underestimating the amount of effort that they do put into keeping their ads clean. A few highlights from [their 2016 report][1]:
> we disabled more than 5 million payday loan ads
> In 2016, our systems detected and disabled a total of 112 million ads for “trick to click,” 6X more than in 2015.
> We disabled more than 68 million bad ads for healthcare violations, up from 12.5 million in 2015.
> We took down more than 17 million bad ads for illegal gambling violations in 2016.
> In 2016, we took down nearly 80 million bad ads for deceiving, misleading and shocking users.
> in 2016, our systems detected and disabled more than 23,000 self-clicking ads on our platforms, a huge increase year over year.
> Last year, we took down almost 7 million bad ads for intentionally attempting to trick our detection systems.
> In 2016, we suspended more than 1,300 accounts for tabloid cloaking.
> We took action on 47,000 sites for promoting content and products related to weight-loss scams.
> We took action on more than 15,000 sites for unwanted software and disabled 900,000 ads for containing malware.'
> And we suspended around 6,000 sites and 6,000 accounts for attempting to advertise counterfeit goods, like imitation designer watches.
On mobile, the ads I see are almost exclusively fake virus warnings, "clean your phone" and other crap like that. Complete with flashing yellow and red images.
Are those Google Ads though? Google is indeed a dominant player in the advertising market, but they're not the only one. You could be seeing ads from a different ad network.
All of those things you described (fake virus warnings, "clean your phone", flashing yellow and red images) are against Google's policies for AdWords. See: