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Incredibly smart, IMO. Having networked with a lot of older business owners who still rely on newspaper ads, Yellow Pages, etc., this is the kind of thing that'll get their attention AND get them to realise what they're missing out on.
Credit where credit's due. Google has a mass appeal product that's perfect for an ad like that, yet they somehow still make light of it. Good creative.
The irony is flowing think and fast in that ad but it's really smart. First, it's getting coverage. When's the last time your ad did that? Secondy, it's targeting the right people for new customer acquisition (the ones who don't use internet advertising already). This is the kind of opportunity that most inbound marketers miss. You could call it SEO myopia.
Meanwhile, my newspaper ads keep pulling consistently with no outsourced "quality" fairies who don't have the faintest understanding of my industry telling me what I can and can't run.