ROAS adjust bids on keywords that have very few clicks (1-10). Which isnt enough data to determine if a keyword is really a truelly good keyword, is this not wrong or have I missed something? 2-3 clicks isn't enough to determine true CTR,CPC, etc. so why is it for ROAS.
Re: ROAS Bidding
While I, as an "outsider" cannot see enough data to make sensible bid adjustments based on such limited data, I am not Google. They have access to a much deeper pool of data, including performance for that keyword across a wide range of accounts and for a longer historical time-frame.
They do a lot of behind-the-scenes data-crunching and analysis and by the time a tool like this is offered publicly, Google has a very high confidence that the results it produces are what they claim.
Sorry, that's about all I have to offer by way of explanation.
Google AdWords Top Contributor