Brave aims to sustain the roads that grant you access to that scenery. For some users, they are able to pay a bit out of pocket (depositing their own tokens). For others, they can take advantage of a private advertising system that finds relevant ads, while paying the user 70%. This allows users to passively support the roads, if you will.
Unlike billboards down the side of the highway (which, I agree, aren't pleasant to see), only the users who wish to see ads are shown ads. And they always determine how many are shown (which is not the case with billboards). Brave Ads are tuned over time, too. As a user engages the app, the ads will become more and more relevant (unlike billboards). All that said, the default experience is (and will remain) an ad-free experience.
To your Krebs citation, he is absolutely correct. Give your data to somebody, and it's likely they'll lose it, leak it, or sell it. That's why Brave avoids your data as best we can. Brave Ads takes place _on your machine_, where your data naturally lives. You don't entrust us or anybody else with it.
I hope this helps!