A few others have noted, but search ads are actually perfectly native ads. The form and function are identical to the rest of the stream they are shown in. Setting aside the term "native" then, as the point was much more about brand vs. direct response ad markets.

I'd reword the author's thesis (while keeping the intent) to look like this:

1) All mediums develop native advertising styles over time, which web & mobile are just in beginning stages

2) The market for brand advertising will continue to be larger than the market for direct response advertising

3) Google won't win the market for online brand advertising