If you look at the Pepsi Food Frontiers Blog you will see that it now says “ADVERTORIAL” along the top of the blog. My understanding is that this is temporary and more design changes may occur, but the objective is to make this sort of blog clearly distinct from regular blogs. This is a good first step.
The RSS feeds from sponsored blogs, including the Google News Feed and such, will be handled separately, and posts from the sponsored blogs in the Fire Hose feed will be marked as such (eventually, not sure if that is in place yet).
People should still send in their feedback on this.
UPDATE: It gets worse. Chis Mooney has provided some additional details. As more and more is known, my tendency to say to ‘William’: “oh, stop confessing and just get back to blogging, we forgive you” is turning into “OMH, you fuckhead, please slit your wrists now” … except I’m afraid he’d do it and I’d feel a little bad about it. For a minute or two. Anyway, check this out: Appalling Revelations about “Tom Johnson”