This is just about user choice and freedom from dark patterns.
If you want tracking and targeted ads you are still free to enable that option.
All others are asking for is a chance to opt out of targeting. I don't see why having that as an option is so bad.
If ad targeting was such a great thing for users Facebook/Meta wouldn't have to fight tooth and nail to prevent people having nothing more than an opt out.
2.) My cookie autodelete + adblocking setup means I have to click the "reject cookies" consent on YT once per session. Except one of my filters break the form and it's invisible. My lazy workaround is to disable ublock, click reject and reenable it so the video actually plays. During this ritual I catch a 1-2 second glimpse of a YT ad.
This site explains better than I could.
Otherwise, it's just like every other form of advertising ever, yes. Rather than have ad companies know everything about me, I gladly choose more generalized ads.
Remember that in total no more diapers are sold regardless of these commercials, they just cause consumers to buy a specific brand. If advertising diapers no longer works, they’ll all just stop advertising and be better off.