>How is that inherently harmful?
Aside from collected data being used for other purposes besides advertisement, when efficient, it allows charging the individual more than they "should" be paying. If an industry "knows" that your washing machine broke, it "knows" that you would be easier manipulated into paying a higher price (sorry for the simplification and the amount of quote marks).
>Doesn't charging a large sum for something offered by an ad mean, that the ad provided something of value to the user?
If a user was to be compensated, the payment for watching the ad is most definitely coming out from the product price in the end, so on the big scale there is no compensation.
>potential for the collection of that pervasive data to negatively impact the user and broader society.
Absolutely agree.