We know Google allows products in AdWords now and we even know a way to make it happen for your ads.
An anonymous reader just sent me screen captures of Google testing a new way of displaying those products. Here is a cropped version of his screen capture:
Here is a blow up of the AdWords ad:
Versus the current way:
Hitting the plus sign:
Forum discussion at WebmasterWorld.
Update: Kurt Krake spotted this on a top premium ad position and sent us this screen capture. Notice, this is for a different advertiser: