The idea that a site should automatically generate revenue simply for existing, especially when it's relying on unwitting invasion of visitors' privacy in an increasingly illegal manner, is ridiculous at best; malicious and predatory at worst.
People won't pay for many small sites separately, so until we have a viable alternative (e.g. automatic micropayments) eliminating targeted ads would effectively eliminate independent journalism as well (regular ads pay much less) and we'll only have sites financed by big corporations pushing their agendas.
I'm not a fan of targeted ads, but I rather have them if they allow independent publishers to operate, than having only new sites financed by big money.
This is just "the ends justify the means", because the consequences fall on the visitors, not the site owners, advertisers, or data brokers. It's a disgusting, predatory rationalization for offloading the damage while reaping the rewards.
Patreon on its own delivers hundreds of millions of dollars of funding a year. Web ads existed long before individualized tracking, and still are that way in pretty much every other medium (print, billboards, broadcast media, product placement, etc). Independent journalism existed in websites, blogs, pre-monetization youtube, etc as well. Heck, SV investment is available and all about spending money without any real revenue plans anyway. :-P Just this one very particular ad model needs to be ended for everybody, big and small, and the advertising market still has everything else covered. The "big money" sites also still need to monetize somehow (and much more voraciously), and wouldn't be allowed tracking ads, either.
If you can't make money without violating your audience, then you don't get to make money at it, and all scales should be held to the same account if it is genuinely considered an issue of rights.