Google video ads good? I think so.
However, I somewhat disagree. Like most Google services, its adoption will probably be slow, but I think there is enough value in this new format to get it off the ground and pick up speed.
What value am I talking about? Well, thinking as a current AdWords advertiser, I would gladly provide Google rich video advertisements that promote my company. Granted, it's harder to produce a video advertisement and only a fraction of advertisers would even know how to make one, but for those who do (companies serious about advertising often have a marketing department capable of handling the dirty work), it's an effective way to advertise.
Even if the ads dont lead to sales directly, it could be a cheap way to build brand recognition. Advertisers don't pay for people to watch the video -- only click throughs. Even if no money changes hands, users will often remember "commercials" better than neatly blended in text on a website.
As an average AdSense publisher, why not allow videos to be displayed? There will always be publishers who prefer text links -- myself included -- but there are a lot who are simply interested in making money and don't care much about what kind of ad units are displayed. Besides, having a box that resembles an embedded video could have some pretty impressive click through ratios.
From the viewpoint of someone who is exposed to these ads, I don't see the majority being hugely annoyed by them. These ads require clicking the play button if you want to watch the video, otherwise it's basically a static image.
In my perspective, there is little wrong with what Google is doing with their video ad units -- in fact, I think it's great for all parties involved.