Why not just follow Google's TOS entirely and never use any black hat methods at all? These are questions that have persisted since the 90's and it has one very simple answer: because cheating, when done properly, can give you amazing guaranteed temporary results.
In the case of cloaked CB links on Adwords, most affiliates understand that they can attract a copious amount of quality traffic using CB with Adwords than they can with Bing ads. Even if that success is temporary, the black hat affiliate believes they can generate more money this way than by following Adword's TOS (and this sometimes works for black hat affiliates, too).
You're asking excellent questions! First, here are some answers to your question about how cloaked links increase clicks.I have the same question bro. I think What he was asking was that why would anyone do it? What are the advantages? Hows does cloaking get you more "copious" amount of quality traffic ? Do they get free traffic? I'm honestly confused !I would appreciate it if you can explain.
I've seen people creating landing pages/websites and promoting clickbank offers (using Adwords) without any problem. One thing i don't know is that why would anyone Risk their Adwords account and cloak the clickbank offers? I mean i've always been told that Landing Pages increases the sales !
" But this isn't really new is it? And it's not only about the display URL policy either... It's about hijacking a good page / domain to get a good quality score, and using that quality score to make sure you get cheap clicks on your bad landing pages (with high CTR's, I bet)..."