I think we should keep searching for solutions.
I'm not a huge fan of advertising, but I also don't think they have to be a privacy nightmare. I don't think there's actually strong evidence that intimately targeted advertising works significantly better than simple context-based advertising (put an advert for bicycles in an article about bicycles). I think that's a myth that's been propagated by the tech giants who depend on it (Google & Facebook, obviously). So maybe non-invasive advertising could work quite well?
At the end of the day, I accept we're going to have a mix of models. A bit like tackling climate change - we need a mix. Some ads sponsored, some donation-based, some with affiliate links, some with billionaire patrons, some state-sponsored.
But to my mind, models that literally block those who can't pay, or are disadvantaged in some other way (not tech-savvy enough) are the worst models of all.