Tracking will always be more profitable, because that allows you to know whom to target exactly. It’s the fundamental question of business, who are my customers etc.
Tracking should be considered equivalent to putting an electronic tracking into every customer’s pocket when they visit your brick and mortar store. Then the question of privacy becomes more obvious. It is simply not acceptable to track people this deeply and invade their privacy so much.
But there is a dark difference if it is de facto the main source of revenue, or some scammy addition.
In the later case, it can be regulated - the same way as we have safety regulation for food or equipment. In some sense, the analogy is not that far off - the current web is made to be addictive. A lot distractions have well known, negative impact on mental health.
Tracking should be considered equivalent to putting an electronic tracking into every customer’s pocket when they visit your brick and mortar store. Then the question of privacy becomes more obvious. It is simply not acceptable to track people this deeply and invade their privacy so much.