Definitely! I recently created a video on my blog showing exactly how lazy they have become. Specifically, not doing any type of automatic check to see if the display URL matches the domain. In the case I found, the guy was bidding on "firefox", showing a display URL of Firefox.org, and taking the person to his own site selling tech support.

http://www.scrappybusiness.com/hacking-the-adwords-display-url.htm

The post mentions that "Google has taken notice" but that has NOT been the case for me at all. I got pushed to very high bids on Quality Score (another story entirely) but I still see people showing up on these terms going direct to affiliate with made-up URLs, not even close to the landing page URL. I've gotten on the phone with google and the adwords rep says "you're right, that should not be there, I will refer it to the appropriate team and the ad will be dis-approved." Literally months will elapse, and the ad never goes anywhere. I'll bring it up on subsequent calls, the rep will say they see that note in the call history, and they will refer it again, and still nothing. Go figure.