I would be completely fine with ads on my main sites if they had some form of quality control over AdSense and the likes, or even better yet hosted their own ads like you said, but... tasteful.

I hate flashing ads, I loathe sound, I'm irritated to no end by ads made to look like news articles or any ad that breaks good page formatting for the sake of exposure.

However, unless browsers add ad-blockers by default I doubt we'll be seeing a future where a majority of internet users use it.