However, you are right that most people would probably be fine with personalized ads if it was possible to show them without identifiable tracking.
Personalizing content without identifiable tracking is a really hard issue that I'll be surprised if anyone ever manages to solve. It will also most likely involve some compromises that hurt Google's bottom line, so I think the financial incentives just aren't there for them. Given those two assumptions and Google's track record, I think it's absurd to assume that any standard they create will meaningfully improve user privacy.
Also, I fear their new standards would most likely just circumvent the tools available for users to avoid tracking, as the tracking would be baked into the browser itself.