Re: "insisting that people do prefer targeted ads over untargeted ones"
> but what that actually means is they prefer more relevant ads.
So much this. And "relevancy" is context-dependent. If I'm on a tech site, an ad for related tech is more likely to be relevant to me at the moment than one that isn't, regardless of my other interests. Plus, I don't block ads -- I block tracking. If a site is showing ads that don't rely on Javascript, then those are ads that I'll actually see, regardless of relevancy.
But I can't help but toss this in -- if the price for privacy is that ads aren't relevant to me at all then that's perfectly fine by me.