There may be something simple you might have overlooked google changed its add system although it might not be relevant to you. if google is banning the site this is usually a prelude to them banning you altogether. They won't tell you why they just do it saying your account may be a threat, not that it was a threat only that it posed a potential risk that they can't tell you about because it is proprietary. I have seen this happen on many, many sites, some of them were big names and very popular popular (10k+ daily hits). Look around at the big name blogging sites that used to carry or promote google but are now with much lower paying companies.
If your ads don't show, I would be concerned and immediate remove the scripts from that site.