So instead of contributing to authors, you need to altruistically donate a large proportion of your money to Google in exchange for replacing a single kind of advert? Unlike some other Google products I can very easily see why this was discontinued...
You're paying for websites by viewing their ads. You're paying with unsubstantial things like attention (and bandwidth), which through Google and other Ad providers gets converted to cash for the website.
Google Contributor offered you to pay cash directly, instead of attention. The website owner gets some of that cash, same as they would if you were shown an ad.
Well, if the revenue remains the same for the author, and it also doesn't decrease for Google, it is implied that their margin will have to also be paid by the person who donates, for else the calculation will not work.