Targeted ads are unethical and should be eliminated, the abuses are too obvious to enumerate. Prostitution and drugs have also enabled the existence of many small companies.
I think the way forward is somewhere in the middle, targeted ads with restrictions and opt-outs. Polarization isn't a path to progress.
As an aside, prostitution doesn't have to be the crime magnet it is today (in medieval Europe the Church ran brothels!) And while most drugs are unambiguously bad, some are considered safe enough to be traded openly and very profitably - caffeine, alcohol, nicotine, and now marijuana.