I think what he is describing is a future where the ONLY criteria ads are selected on is the standard user data set. Basically I open my browser settings, go to its "relevant ads"-section, enter some basic ad targeting info such as my age group, gender, and 2 hobbies.
Then because I entered "fishing" as an interest, I'll see a lot of fishing gear ads. Great!
If I'm NOT willing to enter any targeting info into my browser, or if I enter bogus info (or install a plugin that randomizes the info) then sites will not show me relevant ads.
I don't mind seeing ads for fishing gear if I told the site I'm interested in fishing. That's completely fine. I do mind seeing ads for hotels in San Francisco just hours after I searched a different sites for cheap flights there, or ads for that exact shoe I made an incomplete checkout of in a webhop store last week etc.