I would rather have <best case of personalized ads> rather than <worst case of random ads>. That's not an equal comparison, neither does it represent a common scenario.
> It is almost impossible to have a free internet without ads. So on one side, people want everything free, on the other side, we don't want ads, so there is a clear problem here.
People do want ads to subsidize free internet usage, as it has been since the Internet's inception. People accept random ads or even contextual ads, but people flat out refuse targeted ads. This refusal comes out of many reasons, many of which you'll find in other comments around here.
Mine are self-determinism and privacy. I don't want someone, regardless of how well intentioned or competent they believe they are, to collect sensitive data on my habits, preferences and choices to then attempt to influence me. I like to make my own mistakes and own up to them.
Unfortunately many people seem to ignore the fact that it isn't one or the other, and we can reach a balance here.
I can assure you, there was an Internet before ads, and it was better without them.