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Information is power, why give it away?
Because, going back to the original point, no one (massive generalisation) wants to pay for content directly.
Sure those things you mention are private but wouldn’t you want relevant advertising if there was a solution to your itchy balls? It’s not like someone is sitting there in the advertising equivalent of a bat cave pressing go when you Google scratchy scrotum. It’s completely anonymised…
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I can search for 'Nut Scratching Services'. I don't need other stuff marketed to me.
If advertising was banned and everything commercial went behind a paywall, would I care? Probably not. Would others? Probably.
As for anonymisation. ROFL. Lots of it is 'supposed' to be anonymized but even if there's zero PII involved there's patterns that can be used to ID people if you were into that and that's before you even bother linking Facebook or some other social media with your other browsing data.
Also, what you watch and what you're searching for or typing on the internet are still vastly different things.
You're probably not using the TV to research your unexpected pregnancy or itchy balls.
I deal with this shit at work from a tech perspective and I block absolutely as much as I can.
Information is power, why give it away?