This is a screen shot of a typical search in Google

One picture tells it all

Above is a screen shot of a search listing as it appears on my computer. It represents what shows “above the fold”. The first three listings inside the orange hue box are sponsored ads as well as all the listing down the right side. 
There are eight sponsored ads listings that are visible above the fold; there are two organic listings visible above the fold. That means that 72% of the listings seen above the fold are sponsored ads. When you do local searches, the organic listings can get pushed further down the page with the Google places or Google + listings.
Most people don’t realize that the top three listings are sponsored ads, the orange hue doesn’t even show up on some computers.
According to a blog by word stream, Google ads beat organic listings by a 2-1 margin on highly commercial keywords. These would be keywords where the intent to buy a product is clear vs. an informational research. This is not comprehensive data since it only measures a portion of all searches. Back when I first started in SEO, studies had shown that nearly 65% of all searchers ignored sponsored ads. I think that the percentage is now closer to 45% overall.   When I compare click through rates on high organic ranking keywords in the webmaster tools, vs click through rates on adwords, I am not seeing much differences in rate, granted it is very difficult to make apples to apples comparisons.
The bottom line is that SEO is starting to become a less attractive option to many businesses. I still believe that SEO is a viable option, but with the many changes that Google is making to ranking algorithms, local search and PPC, it is much more difficult for a website to dominate rankings than it was 4 years ago.   Whether you like it or not, Google is forcing us to do more PPC.