Google Using User Data Into Quality Score & Bid Prices?

I know a lot people don’t like it or don’t want to hear it but I believe they are incorporating user data and parts of the organic algorithm into the quality score. It’s much more than just high CTR and or conversion rates that keep you from getting price jacked. Since the organic algo is updated and tweaked every few months if they were using it we should also see updates to the quality scores at periodic intervals during the next year, so we’ll have to stay tuned and watch.

I don't want to give Graywolf a big head, but he discusses some pretty insightful stuff in a interview over at the PPC Blog

Let’s say you are doing PPC arbitrage for a CPA program. Using a landing page on your site the more slippery you are the better. The more slippery you are the more conversions and profits you will make. However if Google thinks you are “too slippery” you might get flagged a poor quality and get price jacked.

More specific detail about possible user data over at Graywolf.