No, it's simple: Google is not payed by people for search. They are payed to display ads, whether it is alongside search, or as part of AdWords.

Seriously, are you really arguing that Google's revenues are not primarily from ad revenue? With the sale of Motorola, it'll be back above 90%—just like it was before Motorola.

No one is arguing Google's revenue is mostly ads. It just doesn't mean Google is a one-hit-wonder. There are different advertisement products.

You could generalize any company that way. Apple would be a one-hit-wonder who's revenue comes from one source - selling consumer electronics.