Ask your grand parents, non tech savvy friends, ... if they are okay with Facebook selling their data to anyone. They will object heavily!
Then ask them if they are okay with Facebook using their data to show them more relevant ads. Many will be okay with that.
Then again, ask them if they feel okay being "tracked" - guess what, nobody likes that.
What I'm trying to say is that I think theres a middle ground in targeted advertising, where there's still enough money to be made and still most people feel like they're getting a fair deal (in paying with their data).
What you've highlighted is a lack of education about what different abuses mean. There is no difference between tracking and targeted advertising as it exists today. There is no difference between selling your data and "using it to show more relevant ads" as it is today. The fact that some people mistakenly believe there are differences is tragic and the fact that a company can lie to everyone in this way is a travesty.
They're selling the fact that they have the data. They're selling limited access to the data. It's just exploiting the resource to the maximum gain; if they sold the user data itself they'd be selling the crown jewels and obsolete themselves.