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Yes, but if Google advertises in the Keyword Tool that I can get 400 clicks at $0.50 per click, and then when I join I get 4-5 clicks per day at $1.20 per click -- for the same exact keywords. Ok, thats acceptable. Thats about 3X as expensive and 1/100 the scale, ok.

But if I then see that traffic behave about 90% like garbage relative than organic visitors -- that puts me at two orders of magnitude off, which is quite insane.

Pricing depends not just on price paid but on the quality of your content(as Google sees it) so it is definitely possible that there are people using that keyword and getting 400 clicks a day at $0.50/click.

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