> Half of that is fraud, the other half is at least unethical.
Not really. Yes, ads must be clearly stated, but oftentimes news outlets are just looking for stories to run, which are not compensated with free product or money, and thus are not subject to such advertising laws (in the US). With regards to reviews, I don't mean that reviews are paid, rather that Amazon charges companies to be "sponsored" and if people buy those and review them, their review was at least partially influenced by buying the top sponsored product. Same with personal recommendations, not sure how you can construe it as fraud or unethicality if I see a Coke ad, buy it, and recommend it to my friends.
> Every cent spent on advertising could've been spent on improving the product instead.
It is clear that you don't work on any products that make money, or at least aren't in any of the non-technical sales or marketing roles, or are not a founder who must necessarily do both the technical and business side. I used to think the same way, that ads are bad, but if I build a product and I want people to use it, I must necessarily tell people about it in some way, Twitter posts, telling a local reporter or tech blog, cold outreach to people, all of that is advertising in some respect. If I build it, they do not come, automatically, of their own volition, they don't even know I exist! Us engineers do not exist in a vacuum, we code for the goal of businesses to make money. Such black-and-white thinking as yours is not conducive to actually making and selling a product.