Would you like advertisers to be able to track you (Yes) (No)
Of course advertisers know full well people will press No, and that will harm their income.
Another consideration is your point that preventing ads will harm advertisers’ income. In some cases, hurting income is an acceptable loss, but in others where the service is sustained by advertising, less so.
Perhaps another compromise could be to allow apps that do not accept the tracking prompt to only access basic functionality, with an explanation that the tracking supports their premium service. That’s a very different world for Facebook and others.
On this particular issue, I’ve pretty much decided for myself that individually tailored advertising, net-wide implicit tracking and surveillance capitalism in general need to be banned, or owned by the commons and walled with fine grained permissions. I’m waiting for the tech world to catch up.
[1] Ok, not "have no problem", it's a lot of technical work that is not "feature" and they need to pay for. But again, rules are the same for everyone, and "full GDPR support" can be sold as a feature, so they're largely fine with it. There's also slightly inconsistent interpretation of the law, depending on company. That's also to be expected, some niche players will push the boundaries of the law hoping to get market share, while the larger ones/that have more to lose will remain somewhat conservative and just tell their clients "our interpretation is correct, if you want to go with the niche players suit yourselves, your risk". In time, as courts set legal precedents for the interpretation, this will smooth out.