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In theory, people only advertise because they can make that money back and then some by selling something else. So if there's more money to be made selling things, there's no reason why that aspect shouldn't be integrated into social networking sites.
I would think some companies are scared of advertising on "social" sites. Who knows what type of personal content the "name your big company here" ad could be right next to.
The advertising I like is partnerships such as the third parties tied in with Flickr that offer me creative ways to extend my social site usage. I hate Facebook's random ads that show up telling me to check out Blockbuster online or whatever other pitch. I can't be in the minority on that.