I don't see ads, thanks to ad blocking tech in browsers and smartphones. Any time that happens to fail and I get to endure an ad, I am amazed that regular people without ad blocking tech can endure this onslaught.
The time to negotiate a "middle ground" is long past. Let's not even entertain that idea.
An acceptable middle ground could have been designated areas for ads, which you have to seek out to see them. Think of the Yellow Pages.
Ad companies need to be reined in. They cannot control themselves. They are lobbying against all limits and controls. The only solution is to eradicate ads entirely and to make sure that anyone who gets that idea will never get it again.
If a fridge maker wants to sell you a cheaper fridge subsidized by ads, I don't think that's a problem as long as tracking is optional.
There used to be TVs that don’t have ads or tracking, but that’s not the case anymore (or so I’ve heard; haven’t bought a TV personally yet). I don’t see why fridges would be immune to that.
On other hand with TVs unless you are doing just a monitor, you need something to control it. And I mean like digital TV, selecting input, possibly show some overlay or controls. And at that point just slapping a computer in it is lot faster development cycle. And then you might as well support streaming services as general population seem to want those.