I don't believe that "ethical" and "ad supported" are compatible. Harvesting our private data and selling it to the tech-dystopia to further curate profiles about our every move can never be considered "ethical", imo.
From my perspective, those people who are taking this public client side code (not emulating any kind of server), and removing the privacy nightmare, are actually doing good for society. The software is more usable, more performant, and far more secure when they are done. The only harm is the authors ability to monetize.
I don't think it's possible to have a fully client-side web product and be able to enforce strict guardrails on the use of the code. Regardless of ethics, it's just not feasible. What you give up by delivering the full source code to the browser to render is control over the source code.
If the author wants more control over their source code, and easier monetization, they should compile a binary and distribute that. The guardrails protecting source code, duplication, and copyright infringement are much more clear. That's just the harsh reality of delivering source code to clients.