The logic in my mind is -- Google wants the rankings to be unequivocally trustworthy, e.g., if I'm searching for an espresso machine, would I trust a small ecommerce shop where the experience could be terrible or do we just throw an Amazon or Bed Bath and Beyond result at the top because those are vetted companies.
Sure, the little guy has to grind to get a better ranking and free traffic, but it should in the long term encourage better behavior by companies as they attempt to earn that trust.
And for what it's worth, this is the result I got just now in the UK: http://i.imgur.com/YHXngwR.png
yes, google shows a lot of ads for a vague, contextless search query. but nobody ever searches for anything so vague unless they're trying to prove how google search results are going down the toilet. if you search for the name of a category of information, it's impossible to know what aspect is relevant to you and you're either going to get ads or irrelevant results, and google has chosen to serve ads instead of irrelevant results..
try searching for bitcoin mining, bitcoin exchange, etc, and you'll see relevant results.
flights from los angeles to las vegas
Not sure if the organic results are relevant, because I can't see any.
This is kinda fun. I'd like a website that showed screenshots of popular search-results on Google from across the world.