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.
Taxing them is an option. Disallow advertising and marketing as a deductible business expense. You can still advertise, but it comes out of the bottom line. This encourages putting more money into product value and less into promotion.