This is advertising presenting the right information to the right person at the right time.
On account of the consumer not paying for it, advertising is pretty much diametrically opposed to the consumers wants.
A paid for service which tells you what you want and when you want it is not what google are developing.
That is my definition of perfect targeting. And it also explains why Google wants to get more information out of us. Obviously more information means better targeting. But this better targeting also means better ads that are more relevant. Relevant doesn't mean ads close to what I want but not really what I want. Relevant means genuinely relevant. And I REALLY believe Google is trying to achieve that perfect genuine relevancy.
Sure Good search results are there, but there is still noise. Good search results still requires us wafting through the crap. But with paid well targeted ads, the right information has the potential to come to you by circumventing the things that cause the noise. Companies who know they have an advantage on pervert night vision goggles can pay for that highly targeted area and get the information to the right people.
Look at current advertising, it doesn't generally help you find the best product that suits your needs, instead it shouts at you that for a small fee you can learn the simple secret to perfectly white teeth.
In your above example no company could legally say that it is making pervert x-ray vision goggles. So what happens is the company with the best marketing strategy (and probably useless non-xray goggles) devises a campaign which alludes to the non-existent x-ray properties of their useless goggles. Google helps them target it at you and do so JUST as that cute neighbor next door is raking up the leaves in her annoyingly baggy gardening wear and BAM you're buying some junk which doesn't fulfill your need.
No doubt in some cases consumers will be provided with a product which fulfills their needs via googles adverts, but generally they will get worse value for money and I suspect they'll also get worse products.
A lot of advertising is inefficient but if you stop thinking about advertising in it's current form you can see how a more efficint system can serve a beneficial place in society.