"The ad-tech solution is actually quite elegant in theory - if you can show ads to the people to whom they are relevant, then, as a small business you can let people know you exist without blowing your ad budget, and, as a content producer, the more valuable an ad-view is, the more you can charge for it."

Elegant. In theory. How about in practice.

What problem does this proposed "solution" solve. Once we have answer then we ask whether it is effective at solving it. Proposing "solutions" to problems where 100% of the time the solution uses a computer is easy. We're drowning in such "solutions". The question is whether they actually work.

If ad tech isn't very effective then is it even a "solution".^1 It could just be a very successful marketing gimmick.

The "if we regulate data collection, bad things will happen" is a lame argument used by the ad tech incumbents and ad tech startups. "You'll lose what you have." More likely, the person making the argument will lose what they have. This type of "argument" is made by self-interested parties. It's speculative and there is no evidence to support it. Fear mongering. Without regulation, these ad tech startups, if they ever begin to grow larger, will surely be acquired by the incumbents, ideally producing a massive windfall for the founders and investors. We know this because we have watched it happen over and over. It's like arguing "we need to let the next DoubleClick grow and thrive". Soon followed by "we need to stop the governemnt from blocking our merger with Google." The truth is, bad stuff is happening right now. That isn't speculation. It's fact.

There's a problem. Data collection. And people are looking for a solution. Not the other way around. (A data collection "solution" looking for a problem.) Letting unfettered data collection continue is certainly not a solution to the problem of data collection.

Another line of reasoning is "it's too late to regulate data collection for future generations because some data has already been collected". It's like suggesting "it's too late to regulate pollution because the environment is already polluted". Not sure I should even call this reasoning.

Yet another way that people defend data collection and tracking in the face of public discontent is misdirection. "Industry/Company X is doing it, too. And they are much worse than we are." In the case of comparisons to other industries, we may have to compare the regulation, if any, to which each is subjected.

HN could be "misguided" on its views of so-called "ad tech", if we accept such generalisations. But what about others, who are not "web consumers", outside HN.
The OP is one example. There are others.

https://digiday.com/marketing/confessions-of-an-ad-exec-most...

https://www.newsmediaalliance.org/ad-tech-its-worse-than-we-...

https://www.nytimes.com/2023/02/11/technology/bad-digital-ad...

https://adage.com/article/digitalnext/ad-tech-worst-thing-ha...

https://martech.org/stop-calling-ad-tech-advertising/

https://tbtech.co/business/why-billions-of-dollars-are-being...

It's funny that so-called "ad tech" companies, as intermediaries (middlemen), claim that they prioritise "users", but then they do not like it when they see "users" commenting about so-called "ad tech" on HN. But what about the folks on the other side of the transaction that "ad tech" intermediates. Perhaps there are folks besides "users" who can see problems posed by the unscrupulous middlemen performing data collection.

NB. In this comment I have focused on (a) the "arguments" being made in the parent comment, and elsewhere, that defend so-called "ad tech" and (b) the viewpoints of others, namely marketers and advertisers, about so-called "ad tech". References to regulation of data collection can be assumed to also refer to regulation of data use by the collectors or any parties with which they share collected data. IMO, it's likely any regulation of data collection would also apply to data use, and this would address data collection that has already occurred before the regulation takes effect.