For that to work users have to spend money on their services. I hope that will happen in the future, but until then it is hard to compete with free services that has ads.

They probably still track you even if you paid money, so that makes paying less enticing. And it's prudent to assume so unless they clearly state otherwise

That's because you're not paying enough. If you pay enough, you absolutely can get non-tracking products.

Of course, people either aren't willing or can't. Them's the breaks.

The overwhelming majority of ad-supported services do not offer ad-free and surveillance-free alternatives. Heck, even plans literally named “no ads” can still show you ads.

https://help.hulu.com/article/hulu-ads-no-commercials

You don't know what I'd pay. So can you name any popular services that offer that option?

To add, there are estimations about how much ad money average user generates and it's very much affordable

You don't need invasive and pervasive tracking to display ads. Google became an ad behemoth with contextual ads