"A good compromise leaves everybody mad," as Calvin would say. So, what is Firefox (or Mozilla) supposed to do here? What are any web browsers supposed to do here?

The solution isn't simple

The advertising industry swallows up too much personal data so it can make valuable targeted advertisements. Websites, publishers, and independent creators now rely on the elevated income that comes from targeted advertising, and it's difficult to convince people to pay for content.

Um we must only look at the amount of profit made by these different parties to inform ourselves on where the problem might lie and therefore who might have to take a hit. The advertising industry makes humongous amounts of profit. They make that on the backs of users and comtent creators. You can easily see that by imagining the effects of removing either one of these from the equation. Removing advertising companies on the other hand does not have such effect. In fact prior to the Internet there was no third party advertising middle man between say newspapers and the actual advertisers paying for ads. If we abandon the nonsense notion that everyone gets paid what they deserve, then we can clearly point to redistribution needed from the advertising companies to the content creators and perhaps users. For the latter, either in the form of less data collection or direct payments for data. We probably wouldn't be in this position if we didn't live with an advertising industry oligopoly as some companies would have paid more to content creators and preserved privacy for users. However the free market doesn't tend to produce competitive equilibria in the long run. So it has to be distribution. Get these fuckers by their necks and shake 'em down for a big chunk of the profits they make and subsidize content and data privacy.

And you know how much it would cost any OECD government to publicly fund the development of a web browser? Yeah exactly. But our brains have been brainwashed to the point of not even imagining such solutions.