I get the impression that this program is aimed at people using livejournal very differently than most of the (scadian/fanfiction/other "archipelago of the weird" communities). If you think of it as trying to break into the space that wordpress.com or one of the other more "professionally oriented" blogging platforms currently occupy, then it makes sense that you would want to have adsense avilable.

Likewise, my reaction to someone using it would depend on what the journal/blog in question was - if it was a journal that was otherwise a basically personal journal, I would have that general negative reaction you describe. (One that I don't, by the by, have to facebook ads, probably because it's a free platform). On the other hand, if it was more commercial / topic oriented, it wouldn't bother me. Though I might then read it through rss vs. livejournal, because I divide my content that way.