It's pretty obvious Apple doesn't have financially valuable properties on the web but they have plenty in their application ecosystem.
In Apple's view Apple News is how people consume news, not go to the web where the user experience isn't custom tailored by Apple. Apple News is barely different than Google AMP that everyone rages against, try to get someone to share a link to a piece of news from Apple News and it will come with the ask to subscribe or download it.
So in Apple's ideal plan almost every place where today ads are displayed will be inside Apple News.
And hey, I wasn't aware there exist another App Store where people can buy applications or in-app purchases on iOS.
And yeah you can turn FLoC off too both today and when it will be in production.
Lastly, when did the argument move from "advertising bad, tracking data always bad, targeted advertising terrible" to "if Apple does it then I'm good with it"?