Instead of more palatable user tracking, how about we tell advertisers and internet companies: fuck off, we don't want any tracking? How about we hunt down and eliminate all features that allow cross-site information sharing? How about we treat attacks on user privacy as security problems of the web standards, à la Tor, and build technology that aggressively hides any user signature in any layer, from rotating IP and…
There is plenty wrong. Even Adam Smith's purely theoretical concept of "free market" requires buyers and sellers to be purely rational actors and be fully and correctly informed.
Advertising has one goal: making customers less rational and more biased towards a given product.