Brilliant!

[101Volts]

I can't read it very well, I tried downloading the picture and enlarging it but the resolution isn't high enough. Could you re upload it in a higher resolution so I can read it?

[brutus]

It seems to me that Fender is trying to appeal to the Underground/AcidRock players of the time, notice the Fender Blender and Fuzz Wah. Iron Butterfly had gone platinum that is why, I think, the dirty hippie is jamming the Mosrite
I just wonder about the heading is a thoughtfull condolence or rivals slight?

[Veenture]

I just wonder about the heading is a thoughtfull condolence or rivals slight?

...yeah, maybe Fender is trying to prompt guitar players to read into it;

"Mosrite, couldn't win 'em all but we (Fender) are still around" (so get your asses back to us real quick!)

[Strat-o-rama]

Also, by this time, Mr. Hendrix was doing a pretty good job of selling Stratocasters, a guitar Fender was considering discontinuing.
It's interesting how that ad works in the context of the times, and the majority of guitar players today would totally miss it.