DG: In game advertising, or any other non-direct profit scheme, will not have a noticble effect on the free market equillibrium. Consumers will still pay what they are used to paying and the supplier/manufacturer will see their bottom line increase, therefore increasing their stock value. This makes the stockholder, the REAL boss, very happy.
If the local hardware store offers to pay you $1000 a month to wear a giant hammer shaped hat everywhere you go, most people would consider it. While you are making money and "possibly" bringing in new business for the store, they are paying for the subconscious exposure, thus the true focus of advertising.
In game ads are only going to be a concern of people who have nothing better to do than jump on whatever hate bandwagon is the in thing (Fileplanet, Starforce, Jack Thompson, MMOs, Horse Armor). I could care less about seeing a billboard or a poster in a game for a product. The "realism" can't possibly be tarnished by it as games are not real. They are games and are a fun activity. If you want to escape for your daily lives, unplug your electronics and take a fucking walk.
Life is sexually transmitted.