Yes, the Adwords/Adsense system is gamed all the time (read up on "click fraud").
The fact that Google may cancel your account for accidentally clicking your own ad, when they could just as easily disregard the click, shows their less than altruistic intentions.
You can't fight city hall, and you cannot appeal Google's judgements. Fortunately, Adwords is not the only contextual ad system around.
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