What's important is to watch the money flow. The article makes a great point - If money goes like this:

  you -> developer

then the developer is only interested in making you happy, because you're the payer. However, if the relationship is like this:

  you -> advertising company -> developer

then the developer doesn't really care about you; you're just the means to an end, a vehicle to drive to the place with money. The developer and advertiser will build a business relationship, <cynical> and usually make sure their relationship with you maximizes shareholder (not your) value. </cynical>

Not at all, I think they're insane to think their users will put up with ads. But the amount of revenue from people willing to pay is insignificant. Another way is needed.