Yes, there is a conflict, but it's not an unsolvable one.
Google implemented a compromise - paid ads get displayed at the top, but they are marked as ads, so if you want the most relevant results, you scroll below the paid ads.
Indeed. Google is far from being a saint. The idea I'm disputing is that the conflict between organic results and ads is impossible to solve. Google solved it many years ago, but is now regressing from it.
If you have to scroll, they are not displayed. You seem to have a working definition of "display" which does not include making something visible, but that conflicts with every actual definition of the term.
Google implemented a compromise - paid ads get displayed at the top, but they are marked as ads, so if you want the most relevant results, you scroll below the paid ads.