Advertising can and regularly is done well; Giant Bomb, a CBSi joint, never takes ads for games or game-related accessories on their podcasts and the hosts don't endorse the product when they do the ad. I don't think an astroturfed universe (which is the inevitable end result of "oh, no advertising"--see the profusion of "native advertising" for similar) is a better universe.
It's true that companies won't be able to saturate markets quickly without ads, but I'm not sure why we want that. I'd rather see small businesses grow slowly based on the quality of their products than see companies with the best advertising grow, crushing competitors with better products. Every dollar spent on advertising is a dollar not spent on developing a good product.