First spotted by Kim at AdWords Help Experts Blog, a Google AdWords Help thread has reports that Google is now enforcing the 35 character display URL limit set on AdWords ads.
One advertiser asked for an exception, which Google did allow advertisers to do in the past, and received a reply that read:
Initially for URLs exceeding character limit we used to give exception on a case-by-case basis. However, please note we've revised our guideline on short display URL exception and sorry to inform you that we no longer provide exceptions to the display URL policy for domains that exceed the character space, which is limited to 35 characters for text ads and 20 characters for mobile ads.
There also use to be a way to use dynamic keyword inserting techniques to trick Google into giving you a longer title, but that no longer seems to work for the keywords I have tested. Yes, display URL and ad title are different, I just noticed this as well, when looking back at the history on this topic.
Forum discussion at Google AdWords Help.