You need to consider some users A) don't want to see ads at all (exhibit A: lot of posters in this thread) B) rather see "dumb" ads than personalized one if it comes through individual level tracking and profiling (that's me). From this perspective no amount of evidence can convince me they are "right" and I have no wish to contribute in any way to "betterment of ad quality" for the price it is proposed. This is comment is no reflection on the rest of your argument btw, just addressing the premise.
> You need to consider some users A) don't want to see ads at all
Exactly. I'm really stupefied with arguments that I'm "better off" by opting for tracking ads. Why am I better off? What good does it do to me? It almost seems like these arguments are coming from some other world which I am not living in.
I think some ads are good. Specifically the kind that informs you of something new. Sometimes when I see an ad with a trailer for a new movie in theaters, I'm appreciative that I learned a movie that I wouldn't have otherwise known about.