OP is as helpful as always and I invite doubters to read the traffic arbitrage guide he posted here some time ago, before passing judgment on his credentials.
For what is worth, it seems to me that the disagreement on the definition of traffic arbitrage has more to do with people not thinking the issue through.
Yes, arbitrage means buying something at one price and then selling it for a higher price. In the case of organic traffic, which bothers some people very much, you buy traffic for $0 -- that's all. Why is that so controversial?
Of course, I am simplifying and am not counting all the money, time and personal labor that went into the building of the site, before it started to generate meaningful volumes of organic traffic, which could be a very substantial investment indeed. But that doesn't change anything -- if you want to account for it all, you simply plug that investment into the formula you are using to calculate the actual cost of your organic traffic. For example, if you've invested $25,000 in your website since you started it, and have received a total of 1,000,000 visitors for that period, your cost per visitor is 25,000 / 1,000,000 = $0.025. Of course, the good news with organic traffic is that you get lasting results, so that over time your cost per visitor falls.
As far as monetization goes, one approach that can be very profitable is building your own branded product line and directing traffic to your website with the intention not only to sell things short term, but also to build a following to which you can sell for a long time. You can place a Facebook pixel on your website to track what people do there and then target FB ads based on actions visitors have taken on it. For example, if someone has spent a minute on one of your blog posts and left, perhaps she's not very interested in what you do and is not worth following up. If, on the other hand, she's visited several pages, and perhaps one of your sales pages, you could target her with a video ad about the particular product she looked at. All the while, you are building brand awareness and social media following.
So, yes, traffic arbitrage is a hugely interesting and expansive topic.