You're missing one more part of the issue with advertising: brainwashing. In some ways, I'd rather have a silly, mismatched and ugly ad than an ad that's actually effective at altering my behavior. Pretty much the only situation when I want to see an ad is when I'm looking for a specific product, and there always used to be venues that were very effective at that (specialist press, classifieds, or popular streets where restaurants have their windows). Pretty much anywhere else ads are unwelcome, even if they manage to be "nice", and effectively constitute selling chunks of my brain to get access to Facebook.
And, for the other point, the "tiny, innovative, disruptive startup" is something I've never bought. At best, it's outsourcing the R&D risk, with very few exceptions. So much innovation happens either in academia, or in terrible, huge corporations like Boeing or Stadler.
I'd like to add something to this: we like to believe that we are immune to advertising, but we aren't. No matter how much self control and self awareness we may think we have.
The consequences may not be as grave as they look at first sight, but it's still a very uncomfortable truth. Recognizing my own vulnerability to ads is one of the many reasons why I block advertising.
And, for the other point, the "tiny, innovative, disruptive startup" is something I've never bought. At best, it's outsourcing the R&D risk, with very few exceptions. So much innovation happens either in academia, or in terrible, huge corporations like Boeing or Stadler.