If they ran less hostile ads, people wouldn't be as hostile to watching their ads. Some of the ads they run are just ridiculous and awful. Ads for scams, soft-core porn ads, just the worst of the worst.
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Pretty much all of my YouTube ads are for TV shows, movies, cars, mobile games, consumer products, and various consumer services. Volkswagen, Dove, TurboTax, etc. All incredibly mainstream.
Maybe you're located in a country or region maintain advertisers avoid?
I'm honestly not really sure why you're complaining. If you don't want to be tracked or profiled, you're going to get the lowest quality ads. Why do you think higher-quality advertisers should be wasting money trying to reach you, when you are going out of your way to avoid any interest in them?
To be clear, I'm not criticizing what you're doing to avoid tracking, or your stance against it. But I'm questioning why you would then complain about the ads you receive.
This might be a controversial take, but I don't want to see soft-core porn ads. I don't want to see scam ads. I don't want to see the worst of the worst. It is not a necessary state of affairs that the lowest common denominator ads are ads that are explicitly attempting to prey upon the least informed, most vulnerable members of society.
The fact that the worst ads are the way that they are is indicative of YouTube's willingness to engage in user-hostile activities.
If they were less willing to engage in hostile ads, there would be less hostility towards their ads.
YouTube's solution is extremely simple: vet ads and don't accept money to run hostile ads.
Right, then avoid them. Either don't use YouTube, or else pay for Premium so you don't see them.
You claim people are hostile to watching YouTube's ads because of their quality. But I don't think so -- I think they're mostly seeing normal ads, not scammy ones. Because they're not taking measures against tracking. Your experience would seem to be very much an outlier.
I simply don't see the ads you're talking about, not even a little bit, so I can't really speak to YouTube's acceptable ads policies. But just so you know -- you can also mark checkboxes in your Google profile around which categories of ads you are and aren't interested in. I actually did that, and got less ads for categories I have zero interest in. That may help your ads experience, and make your ad quality complaints go away, if you're philosophically OK with that, since you're providing data freely rather than through tracking.
EDIT: also, I think everyone should block ads. We should snub advertisers and surveillers all of the time. If they want to be hostile towards users, users should be hostile towards them.
Capitalists have had it too good for too long. It's time consumers stop caring about how the poor capitalist will make their dime.
Until the capitalists take the time to respect us, the consumers, we don't owe them anything.
It's time for reciprocity. If they're hostile, we reciprocate. If they're cooperative, we reciprocate.