Would you rather see ads for cat food? (Even though you don't have a cat.) This is not a rhetorical question: please answer it.
The reason for this question is that even though you don't have a cat lots of people do! It's absolutely not a false dichotomy. Either people who have no cats must see cat food advertisements (bad choice), or cat food advertisements must be shown to people who probably have a cat (better choice). There's really nothing in between.
This is the world we live in, and you should prefer to see baby diaper ads vs cat food ads, when you do have a baby but don't have a cat. The statistical number of cats or babies is irrelevant. As you may know, Google is pretty good (not perfect) about not allowing keyword targeting that gets down to individual people so the privacy implications really are pretty limited.
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That said, I have a funny story to share. (About adapting to this world.) I am learning a foreign language and I decided to watch baby cartoons in that language. But before I did, I thought to myself, "Okay if I start searching YouTube for cartoons for 1 year olds, pretty soon Google is going to decide that I'm a new mother and I'll see nothing but baby cartoons in my feed for the next 5 years."
I was sure enough in my reasoning that I went ahead and created a brand new Google account for the express purpose of being able to pollute its YouTube feed. I only watch stuff related to that language learning on that account.
This had the exact effect that I wanted. That youtube became absolutely awesome for spending focused time on my language learning, using all sorts of related videos. It includes people documenting what life in that country is like for tourists and foreigners, it includes foreign-language teachers' channels, it includes related cartoons and films at a good level for me, it includes political speeches from that country subtitled in English. I couldn't be happier with the result.
You know those acknowledgments we've been clicking through for the past few years by Google saying "Hey!! We're doing this. READ THIS"? I think it makes what they do pretty above-board.
As a consumer we're able to adapt to this, but it's not something I have any problem with.
(Disclaimer: I indirectly contributed to Google in the past but not now, I would definitely list it as a disclaimer if it were happening now but I remember that it changed how I wrote about Google especially when I was the most critical of them, so I think it's worth mentioning still. I am a bit nicer when I'm really pissed off at them as a consumer - but this is not the case in this instance.)
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EDIT: I carefully edited this as it is falling to -1. I stand by the sentiments in this comment: they are correct. Downvoters are wrong.