Earlier quoted context omitted.
Its not a choice between a world of paywalls and a world of ads -- closed, for-paying-users services are going to exist whether or not ad-based services also exist. And, open services without distinct ads (which may themselves be ads, on some level) that are paid for by someone other than the direct user are going to exist. The real question is in what circumstances, and to what extent, are services with intrusive ad…
Yes, there's an opportunity cost for content, but different people have different marginal utility for their dollars vs their time. For children, or the unemployed, the marginal utility of a dollar is quite high, but free time is cheap. Likewise, the unauthenticated, un-paid-for Web has permitted frictionless composition and repurpose of content without the need to 'do deals'. Beyond just the consumer issue, a non-Ad…
Yes, but...
> Beyond just the consumer issue, a non-Ad supported web would have severely limited its evolution, by forcing content to require authentication.
Having no ads would have eliminated one of the several means of funding content that doesn't require authentication -- but ads aren't the only mechanism that doesn't require authentication -- and, yes, any limitation in available models would have limited the ways in which the web could evolve, by changing the opportunity space.