I would be OK with this plan. Would there be a way to change the logic so that it could be "show ads every x paragraphs?" That way. if we set the ads at every 3 paragraphs, and had a 7 paragraph story, two ads would show, but the third would be left off? For publishers not wanting to change the logic at all, the default option could be "always show all ads."

This is a pet peeve of mine as well and a much-needed feature.