Yeah, I don't see how Apple can claim to prioritize privacy when they won't even allow real ad blocking.
Nowadays, ads blocker use a mix of Content blockers rules (1) and an Safari extension (2) to block ads.
[1] https://developer.apple.com/documentation/safariservices/cre...
[2] https://developer.apple.com/documentation/safariservices/saf...
You do need a VPN (or otherwise something network-level) to block ads in apps, I think. That's a fair point.
You may be right about the video ad part.