Ads and tracking are honestly just fine and a perfectly good compromise. Fears over them are greatly exaggerated.
But I think there's more to it than that:
It's customary in trade to not have hidden costs or unintended consequences of using your product, anything otherwise is dishonest. And insisting a product is "free" while having hidden schemes to extract value from customers is scam-y.
Then to say ad-hoc that its a "fair compromise"... but if it was a "good deal" why not be upfront about it, why try to hide it? "You should've read the EULA." Well, a bet a bunch of people being targeted/tracked by Google & Facebook are children, many too young to consent, some maybe even too young to even read...