Right, Google got very selective within the last years. But why do they not allow CoinAd? It can't really be because of bitcoin (I'm very sure Google mines a lot of coins with all their calculation power ). They may not accept the site because of little to non content. Have you tried to get the site accepted or are you just saying they will not accept you after reading their TOS?
I really like to see advertising networks using bitcoins and it makes sense to use them on bitcoin related sites but we all know that the advertising market is by far not new and there are a lot of big networks using fiat only but have a lot of advertisers and so it's still much easier to make money with them.
What's about PPV networks like adbrite and contextweb? There are a lot of such networks and some of them will accept your site for sure.
Hope this helps. Good luck with the project.