Paid online services have been a thing long before internet advertising took over. People used to have search, email, GPS navigation, business directories, news, weather and lots more before Google was even an idea. Why do people suddenly think giving up your privacy to look at obnoxious ads all day is the only way technology will progress further?

They don't wanna pay. If you don't like ads, stay in your home or in sandboxed areas you control or approve. You don't get to control other peoples' property.

How will anyone know about search, email or GPS navigation? If its word of mouth, isn't this a form of advertising? How will they pay for them without a credit card; which will be issued by a bank that can't advertise them. Does that also rely upon word of mouth? How can a new entrant arrive in the banking industry without being able to advertise its services?

Without advertising new companies can't develop new services because only the existing ones will have customers.

A public information service would solve all of these issues. The UK has the Citizen's Advice Bureau. Also public libraries can contain informational bits.

In both of the above cases you as the consumer have to actively seek them out. But I'd be OK with public services being 'advertised' on TV, billboards etc as there would be no profit motive.

The same person who pays for my movie tickets or refills my tank.

The same who pays for other subscription based software, music, and groceries.