Technology
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That is exactly the issue, but you are placing quite a bit too much of your disapproval on the audience.
Google (and others) have built business models off of data mining because so many people didn't give a shit for so long about it. They have monetized their users for the entire time they have owned the platform. They have trained their own users to feel like the product was free while using those people for advertising dollars.
People have always hated ads, but you had generations of folks who were born before the internet who mostly just accepted the ads were going to be there, and also have never given a single thought to privacy. That slice of the pie is getting smaller, for various reasons.
Now Google have decided since they can't reliably exploit enough of their users, it's time to start charging them directly. They are fighting against their own inertia. It is they who have trained users with "we aren't asking you for $$, so don't worry about how we're paying for all this, trust me bro."
The modern audience is increasingly made up of people with both the will and capability to set up ad blocking and/or privacy protecting measures. Sorry Google, we aren't going down quietly.
I have the impression ad block literacy has declined a lot. 10-15 years ago I'ld be surprised if someone of friends, peers, same age group people didn't have ad blocking. Now... I'm often surprised if they do, because it became less common to "put in the effort" of using ff with ublock.
You are absolutely right! Part of the horribleness is exactly companies like Google who were the ones teaching people that everything should be "free" as in usable without explicit money transaction, and now they are the ones who are (thanks to EU I guess) trying to revert that and make the business model viable through subscription.
So I do get why the problem exists and I feel no empathy for the companies that are to blame for that. But, I do worry that we have a whole generation of people who think that stuff should just exist and have no monetary value like it just materialized out of thin air without anyone working on it before and neither having to keep it running. That is not a healthy mental model and it will contribute to predatory companies being able to harvest data out of these people in the future meanwhile privacy-first companies can't get them as customers because they have to actually ask for money for their services.
I see where you are coming from there, and I don't disagree with your opinion, but I do still think that while that may objectively be a mindset that is potentially harmful, I feel the net impact in this context is more likely to be increased contribution to and support of things that really are Free (gratis and libre), nudging reality closer to a place where a lot of those sorts of services are free or donation-supported, and less likely to be in corporate hands unless those corporations improve their behavior.
A hard to summarize version of that sort of path and mindset is what initially pushed me away from Windows, but over more than a decade I've developed lots more reasons than cost for why I'd never go back, and for why I've become a Free Software enthusiast and advocate.