Are they going to continue to show ads on their PAID SUBSCRIPTION service? Even the more expensive NO-ADS subscription service that still sells ads?
Yes, they will continue to have ads on their paid subscription service. It's all spelt out when you sign up.
Also, yes, they'll also have some commercials in programs that are required to have commercials under their no commercials service. This is a limitation from the content providers, not with Hulu deciding they want more ads to run. The shows that this affects are listed during signup for the no-commercial plan.
From their help: "In response to feedback from our viewers, we started offering a commercial free experience on Hulu. For a small number of shows, however, we have not obtained the rights to stream commercial free and they are not included in our No Commercials plan. You can still easily access these shows with a short commercial before and after each episode with no interruptions during the episode. Specific shows that still have commercials accessible through the No Commercials plan will be noted throughout the signup, switching and playback experience. While the list of shows may change, they are currently: Greyâ(TM)s Anatomy, Once Upon a Time, Marvelâ(TM)s Agents of S.H.I.E.L.D., Scandal, Grimm, New Girl, and How To Get Away With Murder."
Bolded by me. The wording is not unclear and they don't pretend everything will have no commercials. What you're buying for $8 is Hulu Plus, the library they have with the ability to stream with commercials. Adding $4 to the plan to remove commercials gives you access to the entirety of the "No commercials" package, which does not included a whopping 7 shows.
What does watching those 7 shows give you in practice? Under Hulu+ you'll have a couple commercials prior to each show, with some in the middle of shows. Under Hulu+ and No Commercial plan you'll have one Commercial before the shows, none during and one after. Then when starting the next episode you'll have another before that one. If you click "Next episode" it counts as stopping watching that, so you'll skip the after commercial and just need to watch the before commercial.
TL;DR: I dropped cable and picked up Hulu+ No commercials and Netflix and haven't been happier with my TV Viewing in a long time. The only thing missing is sports, but there are subscriptions available for NFL now too if you're willing to not watch live.