Fair enough, but a lot of them are trying to confuse the customer, as Cory Doctorow found
If the ad at all appears to originate from the company that is the target of the ad keyword it should be rejected or require verification that it’s from the company.
Google could even charge a $10 “review fee” for ads placed directly on competitors keywords (per ad treatment, not per ad treatment per keyword) to discourage this behavior from scammers
Yes, because Google's intended and actual outcome is companies are blackmailed into paying to compete on advertising for their own names. Which is highly likely a navigation query.
It would be different if someone googled "photoshop alternatives" or sth
Like "Figma: an Alternative to Photoshop" (you can tell I'm not an advertising copywriter).
It gives newer, or less well-known, companies a chance to gain exposure. And consumers like me might learn about a superior option they didn’t know previously.
Edit: Thought experiment. Over in the Figma thread there’s a lot of talk about trying to ween themselves and others off Adobe products. So is it really a negative for the industry and consumers if Figma shows ads on searches for Photoshop?