"I usually know where content stops and ads begin, partly because I’ve had access to the Internet longer than others. I think ads target the same audience that Nigerian scammers do"

It is hard to take someone seriously when they begin by claiming that ads are not useful to any party, and then gives a treatise on ads. But what's most offensive the fundamental assumption that only stupid people click on ads. (see references to "lower income" and "lower education"). Not to mention switching between the personal and the accusative ("We retain 5%" / "you're really paying $20").

My summary, I continue to be amazed at how important advertising is to the Internet economy, but that said, I understand it very well. Smart people click on ads. Smart people buy ads. Smart people build ads products and smart people measure and validate their effectiveness. If you go in to the ads or an ads-funded business with these assumptions, you will not attract good ads, and will get the incredible low RPMs you believe exist.