There doesn't seem to be any trolling. Adwords provides exactly the function of allowing people to pay to have their results placed above the highest pageranking result.
The claim that offering this spot to the highest bidder is 'organic' seems bizarre at best.
Yes, they are vertically above the highest search result. They also have a different background color.
...... apparently that last sentence is no longer true. No idea when that happened. However, the ads are called out by a yellow button saying "Ad" before the link text.
