Can you elaborate on this a little? How does this win the ad-block arms race?
Which is impossible to do without horrible false-positives. The arms race between ever-increasing heuristics complexity on the adblocker side and the webpage cloaking ads as content is a race that the adblockers cannot win.
You're right I think, it would become very difficult to create client side heuristics to identify the advertisement elements in the way it is currently done.
But who knows? Maybe machine learning based solutions will become necessary? Maybe dedicated recognition FPGAs?
The war will probably continue for some time.
The real solution is getting rid of intrusive and/or annoying ads, but that would mean sites with tightly curated audiences; no clickbait, SERP spam and other stupid audience-inflating crap.
Ultimately intrusive ads happen because publishers are in a rush to monetize traffic that advertisers view as cheap/low quality. It becomes a downwards spiral of attract low-quality eyeballs -> ad spendings plummet -> devote more screen share to annoying ads -> viewership falls -> attract more low-quality eyeballs -> etc.
Maybe at some point we'll hit rock bottom and things will start improving.
You can estimate the actual ratio of false positives by examining existing automation solutions based on image recognition. As a very rudimentary example, I have successfully used Sikuli [1] for various tasks including a program running "binary blobs". Unless you mix contents and ads altogether (and I personally think that it is fine as long as the ad is properly marked! It is at least a kind of contents, just that what I don't want generally though.) you can't ramp the false positive ratio up beyond a certain level.
a) Advertising is (and always has been), fundamentally, the application of data science to drive return-on-investment decisions. Any company that can do data science and understands RoI will eventually converge to be an advertising company. Calls for Google to "find a product to sell instead of being an advertising company" are calls for Google to throw away their data science expertise. Not gonna happen.
b) Breaking adblockers is a technically solved problem; just serve web pages as server-rendered blobs. (Think 'flash pages' of yore.) We're not doing it yet because the proportion of adblock users is still too small to make this profitable.
But if this proportion changes in the future, so will the web. So calls for more adblocking are just calls for a vastly more closed and proprietary web than today.
That is probably not what you really want.