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I can attest to tumblr bringing lots of traffic. That's how I gave my project a boost before I had even gotten my site live. Once it was live, then I linked it to the website and poof I can see people bouncing between both.
Also, I had no idea you could get banned for running ads on Tumblr, I've done it many many many times with nothing negative to report
I like making my tumblr theme match my websites theme almost exactly that way people can't tell which one they're on and navigation is flawless. Mine is a mess at the moment, but that's I'm working on it lol
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