Thanks for the module!!! What was the reasoning behind disallowing hierarchical taxonomies? Allowing such taxonomies would allow for more complicated views. For example, I could create sections and even page level ads. In the view for the section, I'd use the view taxonomies filter depth argument to find everything assigned to either the section or the page level. But on the page, I'd just pull terms for that page.
It would be very interesting to write a new filter that searched for the lower level taxonomy first, then the parent taxonomy, and then sorted so that it first found the page level ad, but if none were found, it would use the section ad. If you permit this hierarchical change, I'll probably write that.