Regarding 2: That's the fun part! Manual consent isn't required for functional cookies, only for marketing garbage that doesn't help you at all.
Then GP's point towards 'it should work better' implies it works over the long-term and not a single interaction.
I find ads frustrating as well, but it is a powerful monetization strategy and that doesn't have a substitute.
The reason is that so long as some sites show tracking ads, the monetization possible by privacy-friendly ads is almost nothing.
The long term goal must be that no one cheats, so that ad the revenue from well-behaving advertising can go up.
Remember the consent dialogs aren’t ever asking permission to show ads.
Google earned billions of dollars doing contextual ads before tracking user's every motion became the norm