My personal opinion on advertising is very critical, very much like yours. It litterally cripples content quality for pebbles.
As a side note, I currently make about 100$/month with advertising on my mobile apps (~10-15k active users). I really want to switch to a paid product but I'm having trouble picking a correct price for it since I'm not completely satisfied with it myself. There are some mental barriers that I need to break first. Ads were an easy way out, I totally see myself in your pamphlet: a lazy and complacent developer, so afraid to see his pricing expectations shattered that he preferred to ship a free app with a bland and mediocre ad banner. Again, for pebbles.