When you are talking about structural failure of a system - how about an action that fails 80-99% of the time? I'd consider that a failure. Internet advertising as an action created by companies is a complete failed system propped up by players like Google.

I bet that as a total percentage of visited sites from webpages, advertising will account for a tiny fraction.

The perception by advertisers that this is a product they should buy, even though it fails massively, and is very very hard to attribute value to, means we are only one small hop away from billboard and radio advertising.

The illusion of statistical/analytical evidence is so frail without a massive privacy compromise, it makes the whole task seem pointless from both sides.

Now that malware is a part of the mix, makes everyone think - lets just block this shit and get on with our lives.

The ad business now is like a computerised 80's junk tv ad marketplace. Offering little or no value to anyone.

The original instinct by the OP was correct, users are at the heart of the internet - not companies.