I totally get where you're coming from. Isn't that the approach Apple took with their (small) business running app store and news ads? they only allow generalized location and user info, and in app store context its almost entirely query based. but there's no identifying info. FWIW I absolutely hate the ads I see in apple news and they seem to be AI generated images with shitty headlines such as "New government program can wipe out debt. see how much you could save".
Instagram in comparison sends me a ton of personalized ads and I actually really like them. I have a modified .ipa of instagram (Rocket for iOS) and while it turns ads off I actually have that setting changed so I still see ads. Sometimes I find things I really like.