Another update: After speaking with Google, I have learned that this was old code (the ads on/off stuff, they have yet to address the admob stuff) and that they say they are not working on ads in the Dialer. 

Update: Ok, update to this ad stuff since everyone is freaking out about it. The Enable/disable ad code is old and has been in and out of the dialer for the last few versions. I saw a few ad-related sounding things in my travels and grabbed the part that contained the most english.

    <attr name="adSize" format="string" />
    <attr name="adUnitId" format="string" />

This though, is new to the dialer, it's admob code. 

Teardowns never have a 100% hit rate though. This is stuff that's in the dialer, not stuff that's 100% guaranteed to be activated. That's just how the teardown game goes.

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LOL your worst fears are might be true: Google will could show Ads in the KitKat Dialer. 

You can turn them off, though.

    -<string name="enable_disable_advertisements">Advertisements</string>
    <string name="advertisements_enable">Advertisements enabled</string>
    <string name="advertisements_disable">Advertisements disabled</string>-
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