One of the arguments that ad companies employ to justify their tracking activities is that current ads are not customized enough. It goes like this: hey, do you remember the time when the ads we showed you were so obviously hilariously off the mark? We admit that this is a glaring failure on our part and we would very much like to correct it. To do it we need even more personal information from you! Only then we will be able to show you the ads that are ideally aligned to your interests and needs.

I'd say this is total bullshit. The incentives are just fundamentally misaligned. Perfectly customized ads will just perfectly employ your hidden biases to trick you into buying things you don't need.