A lot of that is because, I suspect, that advertising is taken as being evil as an axiom. Ads are evil, therefor anything related to ads is evil. Or, for some, ads that are targeted are evil. It feels religious when I talk to some people - I have spoken with many who genuinely believe that an ad is an inherently bad thing. They resent someone advertising to them in all forms, under all circumstances.
But ads are also a large part of how the internet works. I wrote hundreds of blog posts using wordpress.com for free, and it's because they would put an ad on the site.
So if we step back and ask "how do we allow for targeted advertising while also ensuring user privacy", I think we end up with something like this.
I don't want advertisers to know things like my name, my usernames, the sites I visit, etc.
I am ok with advertisers getting some opaque token with tags like "Programmer, American, Energy Drinks" or whatever. Especially since I can control this in my settings.
Finding a helpful line between helping the right ads get to the right people, thus ensuring the web continues to be free, and also making sure that you're not one data breach away from having your entire persona exposed, seems like a reasonable path forward.