Your thinking small potatoes.
I'd happily allow them to show me ads for steaks instead of tofu because the know the reward card attached to my phone number saved $0.99/pound on beef last week -- if they're going to show me ads at all.
They'll show you ads for steak alright. But they'll be priced higher than they are for me, because they think your more likely to buy them; and they know you can afford them.
This is already starting to happen. Web sites are showing consumers different prices based on everything from what browser they use to where their ip geolocates to; if they can link that to your browsing profile / facebook account / ...
That's not trading privacy for peronsalized ads. That's letting a car salesman follow you around, root around in your pockets, your garbage, and your bank accounts and then when you drive up on the lot to inquire about a new car.
The tenuous balance of power between buyer and seller will be fundamentally altered. They'll know exactly what buttons to push; exactly what you can afford; and all your preferences and blind spots... so you walk away paying the most for the least.
The idea that they are just going to show you ads for things you want instead of things you don't and make your life better is naive. They are going to make you want things you wouldn't otherwise have wanted or even known about. And you will pay for them exactly the most you can afford, thinking you are getting a deal, and thanking them for taking your money. You will never be any happier, because they'll always know exactly what to show you to make you want more.
I cancelled cable early this year. (and we've got adblockers; and we watch ad free sources like netflix and torrents; and listen to music we've downloaded etc... ) And this last week my wife and I were realizing just how out of tune the whole family was of the advertising cycle.
Our kids "wishlists" for Christmas were both smaller and better thought out than usual. Stuff they had enjoyed at friends houses, stuff they wanted that pertained to their own interests.
I'd go as far as to say we're "happier and more content" due to the relatively limited exposure to ads.
I definitely prefer the advertisers I do still see not tailor the ads to me. I don't want to be constantly bombarded by ads each chosen specifically to push MY buttons. Its better that only a few hit there mark, and the majority are for products I've got no interest in nor use for. Those don't tempt me.