I can't say you are wrong since that was the original deal when it came to broadcast entertainment, but it lacks nuance. Not only was advertising on broadcast media somewhat regulated (by the government) or controlled by industry ad boards (the networks themselves), at no point did radio, TV or newsprint ever report back so much information to the advertisers.
It isn't a matter of expecting everything to be free. For example, look at attending a professional hockey game where there is absolutely zero expectation of anything free, yet attendees are deluged with advertising upon entering the venue. There are often breaks in game play, just for advertising.
With respect to the internet, the ad industry has managed to ingrain itself where ads may never be shown. Google (an ad company) provides site analytics for free, and those analytics can be used by Google to steer advertising on sites far removed from the site being monitored.
Take an hour and watch the DNS traffic from any streaming app, free or paid, and watch the privacy circus unfold. This industry simply can't help itself from figuring out ways to look over everyone's shoulders.
Recall that I mentioned that at no point did radio, TV or newsprint report back so much information, even that has been changing. ATSC3 TV receivers by default will report back location information and viewing habits not only to the TV stations, but to any number of ratings services. Over the air guide data is intentionally hobbled so one must use the internet to get it, providing metadata on viewing habits. Online subscriptions to newspapers require use of readers, again reporting home on reading habits.
While I think you are correct to raise the point that in some ways it is the price of free, the advertising industry has managed to wiggle their way into data collection for things that are not free, and on devices for which we pay a considerable amount of money to own. It may be wrong to say they've taken over the internet, but they've sure come into our lives uninvited in increasingly intrusive ways.