Google is pretty good at making sure they enforce their polcies in a way that is fair to their customers. While they obviously could exclude Steve's site if they wanted to - they aren't going to because:
1) His site drives tons of targeted traffic to advertisers.
2) The ads are obviously seperate from the content.
These stricter policies are made to weed out sites that deliver advertisements instead of content. As long as you are producing value for other people there is nothing to worry about
