They have a form of spoof advertising in DL now - there's a big iKorx billboard in the influence victory screen

Personally, I don't find it *that* annoying, but I've only played a couple games that had any. I could see how it could get out of hand, though.

Well as much as I could ignore it, I feel political advertising doesn't belong in games.

For all the things Hellgate London did wrong, in-game ads they actually got right: if you're going to do it, make them part of the game world so they don't stand out like a sore thumb. In Hellgate, the in-game ads were in the forms of washed out posters on the subway station walls. As you ran by, you couldn't really tell much of what was on them, it blended in and looked much like you'd expect a dirty old poster to look in the "destroyed London" setting. If you stopped to look at them up close, you could see the ad.

That kind of thing I don't mind. If the ads start being forced on you, then it becomes a bit of a problem..

As long as they are a decently believable part of the game world, and it (somehow) ends up in cheaper/more/better games for gamers.

But politics are abosolutly off limits.  They are strong, polarizing issues that are implicated and it can be offending.  I don't want to have to think about real world problems when I am enjoying a good immersive game, give me a break.

But what about a Coca-Cola or Pepsi ad for instance?  I am a Coca-Cola loyalist, but I would not be particularity offended to see a Pepsi ad in game.  Of course it can't be like an internet pop of some stupid logo wallpaper in your inventory screen.  In game billboards and other places that ads would appear in real life are fine.

In game product placement ads are one thing,

They are a cheap attempt at exposing thier product to the masses more often.

They can also add more realisim to the game.

In some cases be really good for the game such as the Grand Turismo series.

But they are not (so far) intrusive or inflamitory topics or products.

In the case of the advertising method with the political ads, they (developers) are leasing space in the game for ads. The current election may be historic, but it is also going to go down in history as one of the hottest debated one. 

As pushy and as much money that can be involved, you can expect to hear "This is aproved by Barack Obama" before a multiplayer match in the near future. 

Last game I played with ads was Ghost Recon Advanced Warfighter 2 - game websites and automakers hawking their stuff in Mexico.  Yeah right.  So much for immersion.

I think some advertising can be in perfectly good taste.   Like in Warcraft, I wouldn't mind some neutral creatures being polar bears, who drink Coca-Cola from time-to-time.   ...and then I bring my Orcs in, and kill them.   

And then all the sports games, I think the binary athletes should totally plug Nike, Adidas, Sprite....   Because that's what they do.

If any game has the most in-game advertising, it would bo one of the NFS games.  when you get awards it says that you have won "The Progressive" whatever award.  there are advertisements all over the tracks and cities too.  A little too much.  One of them, I don't remember which one, got the Gamespot award for the worst in-game advertising of 2007.  It can easily get out of hand.