Yes, I agree, and I also don't think that ads in printed newspapers and magazines are a problem, for example.
If I were to propose a general law to regulate advertisements, then it would be that if you serve content that qualifies as being an advertisement to a user, then the choice of advertisement must be independent of any data about that user. This includes the username and any details the user has entered or which has been collected as the user has been using the service, and also any ephemeral data associated with the session such as IP address. That is, the choice of ad is completely parametric in the user; if two users request the content from different locations, then they should in principle be served the same ad (ignoring other state such as ad impression counters which would still be allowed).
This would probably not be good for the ad-tech industry but I think it could remove many of the perverse incentives leading to excessive data collection.