I was commenting on the revenue potential, not the ethics or quality of the product at the end of the process.
That said, I still love Google Search-- it's nigh magical how it shortens the distance between my brain and the answers it craves at any given moment. And I still watch youtube (yet another service that some said would never make money), even with the ads. And I still use Facebook to stay connected with friends while I travel the world for the next 6 months or so. I don't see any (present or future) privacy consequences with these services, and the ads hover right around the "tolerable" range.