Update: It appears that I misread the Dolphin Blog the first go around - version 5 doesn't block in-browser ads, the in-app ads have been removed. I apologize for the misinformation.
The final version of Dolphin Browser HD 5 landed in the Android Market this morning, and it brings a whole slew of bug fixes and improvements along with it. Among the many improvements is one that most users will be quite happy about -
Dolphin HD now blocks all Google Ads within web pages without the need for an add-on, making your browsing much simpler, as well as using less bandwidth Dolphin HD is now ad-free!