Ok I think there's been a miscommunication. I said advertising ruins things because it knows no limits, it doesn't know when to stop and overdoes itself. You are correct in saying that advertising is necessary to sustain free services. We wouldn't have radio, tv, content, free apps, search engines, etc... without it.
"Limits" in terms of advertising are relative and often moving targets. As a new product or service, it's hard to get noticed without testing where a certain limit may be. GoDaddy -- loathed by many, but not by most -- would not be the large firm it is now without having tested those limits. For better or worse, it worked, and some nice people have jobs (their campus is less than 2 miles from us).
I serve on the IAB (Interactive Advertising Bureau) mobile committee. As a newish member, we don't have much influence... but I can confirm lots of "limit testing" is on the way. It's hard to monetize mobile, and ad delivery/targeting firms are in a panic.
