First I would not brag publicly about "snagging" customers from Godaddy through your paid ads based on a search of their registered trademark. It will only encourage Godaddy to file a suit against you to recover damages based on your stated monetary gains. They are known for their aggressive legal actions and would have a very strong case against you for damages based on your own statements.
Second I would suggest that you look at Google's policies more carefully. Specifically read about their Trademark Complaint Procedure at
http://www.google.com/tm_complaint.html.
Finally while you may think you are the smartest person around for inventing this scheme you should think why this is not done in other more obvious instances. You may already have been rejected for similar ads with "Network Solutions" as the keyword - Google will only show NSI sponsored links for this keyword.
Take a look at other famous trademarks and you will see no sponsored links on the right hand column by any competitors (ford, volvo, nike). Others have obviously demanded that Google stop ANY sponsored links and Google has complied (gm, vw, google, ebay, nbc, msn). Despite 169 million results you cannot find any sponsored links for a search of “sex”. Do you think advertisers forgot about this word? I would suggest it was removed based on trademark complaints.
FYI you are not the only person making such improper use of registered trademarks of your competitors. AmericanSingles uses Lavalife, OfficeMax uses “office depot“, Alibris uses Borders and yes Simplehost and several others use eNom. One email by any of these and the sponsored links will be removed by Google.
So as a practical matter Google will pull your ads shortly after Godaddy files a complaint with them. From a legal standpoint making a commercial gain based solely on a competitors trademark rights is improper. And as an ethical matter selling your product B when a customer is specifically looking for product A is questionable at best.