This is the problem (at least for me). It's the same as so many products (free ones especially), people care more about price than anything else, so businesses are incentivized to produce cheaper, ad supported lineups, and inevitably nobody buys a more expensive, ad-free version. It's the same for airfares (people would rather pay less and be treated like crap than get to be a human for a bit more), shopping (get treated like cattle at walmart but save $.5 on hotdogs or whatever).
With ads there is also the idea that the rates you can charge for ads are much lower if you let people pay to opt out, because basically you've pre-segmented for the cheapskates, when advertisers would like to advertise to those with money.
Bottom line, we're screwed