Disclosure: I also work for a company that specializes in fighting advertising fraud.
I think this is either willful ignorance or a complete misunderstanding of the fraud ecosystem. It's not about click through rates by a long shot.
But since the OP's main argument seems to be how the bigger ecosystem of online advertising already accounts for fraud, let's take that further. With this attitude, he's effectively saying that:
- They're okay with indirectly sponsoring the spread of viruses and trojans (rationale being: it's cheap!)
- They're okay with paying some dudes with some smart scripts (eg. the fraud mechanisms) the same amount of money as hard-working content creators and publishers
- And they don't care enough about the budget either. Accountability is apparently a fairy tale in this context?
The industry is under heavy fire regarding this subject as it is, and I'm not sure whether this attitude is going to further the conversation.