I don't understand why it doesn't work for all Google Ads.
The content creator would just like the money. They don't actually want to display the ads. If they could get the money without displaying the ads, they'd be over the moon.
Why doesn't Google make it work across all sites, and pay the sites using Google Ads the average revenue they were already getting per page view?
The problem is that - as described above - many websites use ads from multiple networks, so actually even if you paid, most ads did not disappear. It was more or less random. Also, it turns out ads make sites a lot of money (who knew), so to get even that sketchy coverage required you to pay a LOT.
I feel like your second point was a missed educational opportunity for users. Ad views are worth a lot more to advertisers (and consequently, publishers) than what you are willing to pay - 'free content' isn't free and if you as a user aren't willing to pay for it then it's probably not fair to complain about the ads. The thing that upsets me is when I am willing to pay for content (Washington Post, The Economist, FT, etc.) and I still get served ads.
Online advertising reminds me of airline travel in the sense that people complain about the low quality service but are only willing to purchase the cheapest flights. The industry has shifted to accomodate what people actually want, not what they say they want.
It's bad for their brand and image. They promote their ads as least intrusive. If they are so user-friendly, why would anyone get them removed? It is simple brand management.
The content creator would just like the money. They don't actually want to display the ads. If they could get the money without displaying the ads, they'd be over the moon.
Why doesn't Google make it work across all sites, and pay the sites using Google Ads the average revenue they were already getting per page view?