There is no reason we have to make the false choice you present. That is simply Google holding a gun to our heads to encourage us to choose something that is in Google's best interests rather than our own.
The choice should be between X targeted ads or X non-targeted ads. They can still target ads based on the content of the page, no different from how television and print ads worked prior to all of this data collection.
The choice should be between X targeted ads or X non-targeted ads. They can still target ads based on the content of the page, no different from how television and print ads worked prior to all of this data collection.