Currently (prior to June-2009) the default font size is "small" (see below)... In the future Google will be figuring out which font size is optimal overall for adsense publishers---but you can select a bigger font size right now.
If you go into your Adsense account, "My Account Tab", you can select the default size for your adsense ads---I have recently changed my default from "small" to "medium" and I am currently pleased with the results.
I'd like to know what your experience has been with changing your font size---give it a whirl, and post a comment back here to alert other Adsense publishers as far as which font sizes are working the best on your site(s).
(And remember---It's not just with your type-size in which "bigger is better"---larger ads tend to be more profitable).
***Update*** A few days after the original post, Adsense changed the default font size on every publishers' websites to the "Medium" size. In their testing they found this size on average to be most effective---You may still chose to tweak your advertisements with large or small size fonts to see what is the optimal choice for your sites.
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