He seems to be shifting away from that. There is a "private feed" that will "increasingly carry content that will not be available on the public one" (from first 20sec of Making Sense #168). So yeah, he either wants more income or just donations isn't that great.
If they cannot find an ethical business model, then they must go out of business.
I hate Display ads because they're content heavy, irrelevant and suck my personal information. But podcast ads are not targetting nor using my cookie or phone id. It's just some content creator is getting paid to get the word out and in fact the podcaster would make it clear that this is an AD unlike in many other platforms where inline and native ads are common.
You say that, but there are products to allow dynamically insert personalised ads server side when you download a podcast.
This is in large part why we're starting to see companies make "podcasts" that aren't podcasts at all, requiring proprietary players. At that point they really don't need to sell ads against their shows, because they're collecting data on you in a way that a podcast you're listening to on a typical podcast player absolutely cannot.
Edit: This assumes using a web browser to access the feeds. Obviously cookies won't be kept with an app.
Edit: Corrected autocorrect
I buy lots of games of certain genres. I'm always wanting to know about similar games in those genres that match my taste. But almost all game ads are for the major big games that I generally either don't buy or already know about and will buy ad or not.
Ads that inform me of new games that meet my taste will easily convert to sells far beyond the rate of standard ads. But such ads rarely exist at all, the closest thing being sponsored reviews but even those I generally have to know about to look up.
But at the same time, I want these relevant ads without giving up medical information, health information, relationship status, political views, or similar such information.
There are ads, but they are spoken by the host in his normal tone. No loudness tricks, just one minute reading the copy. I suppose OP's tool won't detect this unless a human tags all the spots.
Second, the ads are focused to the audience and may actually be useful sometimes: hosting companies, SAS tools, etc.
In the reality there are no one "correct" line. The line is just the equilibrium between this opposing sides.