Has Google's main focus turned in a different direction (products, Government - see cage codes 6HU35, 1XAU1, 6MHC8) that has their search engine destined to become obsolete returning no content and/or old stale sites.

Not obsolete, in my opinion, but Google is utilizing their index in such a way that funnels more webmasters into Adwords out of frustration. Keep in mind that I'm of the minority that believes Google will return mostly paid listings in the not so distant future. Gradually lowering the organic expectations of webmasters is occurring right now and could be a precursor to Google consuming more real estate for paid listings. Free organics would simply be used to fill in the blanks when no relevant paid options exist.

In most of the industries I monitor, Adwords does not have the relevancy or domain crowding problems that are in organics. This benefits Google by making the paid ads far more diverse and appealing than what is displayed in organics, which I'm certain will boost the number of clicks the paid ads get.

I'd say Google is trying to balance relevancy with profit targets. Providing that paid ads can fulfill each user's query, what is displayed in organics has taken a back seat. Simply put, satisfying user queries is not profitable for Google unless those users are clicking on paid ads. This does not make Google's search engine obsolete, but is part of an evolution process to generate more profits from all of their users.

Keep in mind that I'm of the minority that believes Google will return mostly paid listings in the not so distant future.

For commercial queries? Maybe. For informational queries? Unlikely, because most sites that aren't in the business of selling things can't justify advertising or have no motivation to advertise.

As a practical matter, Google would almost certainly think twice before dumping organic results for 100% paid results on commercial SERPs. Taking that radical step would invite every marketer and spammer to pollute the organic results with fake informational pages, not unlike the thin affiliate pages that cluttered Google's results not so many years ago. It makes far more sense for Google to simply increase the ratio of ads to organic content on commercial SERPs. If those ads are more useful than the organic results (as they often are, especially in the case of Product Search listings), then it's a win-win-win for searchers, advertisers, and Google.

For commercial queries? Maybe. For informational queries? Unlikely, because most sites that aren't in the business of selling things can't justify advertising or have no motivation to advertise.

I doubt organic listings for commercial queries would be replaced in one shot. What is far more likely is that organic listings will be gradually replaced by paid listings and other Google owned verticals. In fact, this is what has been happening over the years and why being ranked #1 in organic no longer delivers anywhere near the traffic it used to. On information queries, I suspect Google will continue developing their knowledge graph so that they can answer queries directly on their property. In other words, they are coming after those non-commercial queries too, but it will take them some time to develop the technology and to condition webmasters with slight and gradual changes so that they can avoid a large public outcry.

If those ads are more useful than the organic results (as they often are, especially in the case of Product Search listings), then it's a win-win-win for searchers, advertisers, and Google.

In a fair market this may be true. But Google has invested in hundreds of companies and altered the landscape with their multi-million dollar investments. Many sectors have become hostile to fair competition, as the result of Google's financial meddling. For example, how many real estate auctions would competitors need to list, sell, etc. to compete with Auction.com's $50 million Adwords voucher that they got from Google? This is far from the win-win you describe, unless you are talking about Google and Auction.com being the winners and the remaining competing businesses in that industry being the losers. Although Google was smart to avoid the antitrust hurdles of shill bidding with this investment, the net effect is the same. Auction.com is not only listed in about every top Adwords position real estate query I searched for, but #1-#3 in organics as well. It's purely criminal, in my opinion. Regardless, I'm sure Google will get their investment back tenfold.