That's why Mozilla's approach is tracking protection which also happens to block annoying ads.
But yes, if the concern is only bringing in line what people "feel" with the product you want to sell, then Google's strategy makes perfect sense.
So to me it's bad because it's opening up people's computers to exploitation that even Google can't control.
Is it good or bad to write a check to an orphanage for the publicity?
Is it good or bad to save someone's life because they owe you money?
Is it good or bad to block certain ads to make sure other ads still reach you?
If there is a growing product that works better, and fully blocks ads and your goal is only to quickly take over the market and do a worse job then I say 'no' that's not being altruistic...
If they put up a big banner saying "only works half as well at blocking ads as the competition" then maybe it's a little better.