It greatly depends on the audience, but for many cases, unfortunately, it's more likely the case that
you are dreaming.
Typical income flows for streamers include:
1. Passive advertising from video and stream platforms (which many adblockers do block)
2. Active advertising via sponsorships (which SponsorBlock wants to block)
3. Live stream donations
4. Video/stream-independent donations, most usually via Patreon
5. Paid "premium" or behind-the-scene programmes (partly overlaps with video/stream-independent donations due to their obvious weaknesses)
6. Merchandises
And not all streamers can do them at once. Live stream donations only work for some genres of streaming and it is easy to stress audiences. Usual donations may or may not work, but it is usually thought to be weaker than live stream donations due to its passiveness (unless you come up with very different perks, but then your income is completely independent from streaming).
Many high-profile channels rely greatly on merchandises because it does have significant margins if you can keep launching enough of them, but they are especially risky when your channel and/or stream is not large enough. So smaller channels have traditionally relied on passive advertising, but its flaws are well known and discussed to the death by now. (If you need a list though, higher processing fees, prevalence of adblocking, generally too low income to be sustainable, extreme platform dependence etc.) This leaves active advertising as a compelling option for smaller streamers, at least for now.
While I do loathe most kind of advertising, active advertising like this is something I can (barely) tolerate because it is meant to be performed by streamers themselves, unlike passive advertising which rarely relates to the streamer or content itself. And I'm afraid that there doesn't seem to be any other viable option remaining. I can always skip an ad portion of a video if I do find it annoying anyway.