Yes, Firefox should block ads by default.
Plenty of ordinary users don't mind ads. They'd be frustrated to be told there's now a "don't break the website" switch.
Adblocking requires very frequent updates. It's a cat-and-mouse game. Even if Firefox just installed UBO by default plenty of users would now start filing bugs on Firefox's tracker.
Part of the difference is that every browser blocks popups, so sites are incentiviced to fix the resulting breakage. But on sites run by people who don't care about usability (like some governments and banks) you'll still see messages informing you to allow popups.