It's kind of ironic that with the shift to mobile, ads are forced back to 468x60(-ish).

And they're so small on my device that I can't read them...when I'm not ignoring them.

I can only assume that the CTR must be horrific.

Is there any room for TEXT ADS 

Adsense income SUCKS.  They need to allow more customization to match individual style sheets.  Otherwise, people will continue to ignore their standard formats.

Content-integrated, custom DFP-tracked ads that incorporate website-specific styles still do well. 

I wonder what size ad works on the Apple smartwatch? Maybe the size of a favicon, hhh?

Ya know, that is a great question.

Can ads run on a watch?

Have you seen the UI?  There is NO real estate.  Basically, as I understand it, it's a notifications device to couple with your phone.  Look at this slideshow:

http://www.cnet.com/products/apple-watch/

Now that is just a RIP OFF