I mean, Google Ads are still clearly separated and are labeled as such (there's even a "hide sponsored results" button. Not sure why people even click on the ads when the actual result is right below but that's not usually me.
Step 1: Google made an excellent search engine where the top result is often the right choice for many common queries.
Step 2: Sell the top result slot.
Step 3: Profit.
Really? At least half the time the real results are below "the fold" for me.
This is not how most users perceive it. To us techies, sure. Whenever I watch any regular person using Google though they invariably always click whatever the top result is (usually sponsored) and don't see any distinction.