Push advertising is deliberate mind pollution. You are pushing information onto people that they are not seeking and doing it in highly manipulative ways. It's fine to market your services or products in places that people go to to seek out that information; it's not fine to push it on them.
> and I doubt any significan fraction of users feel they're being abused when they see a banner ad for potato chips.
Victims (I use the term loosely) of the obesity epidemic may disagree. How dominant would junk foods like potato chips be in our diet today without the extensive advertising campaigns over the last 70+ years?
With regards to your second paragraph on user tracking, the fact that you use the word 'hysteria' to discount concerns indicates to me that it's not even worth engaging with you there.