Ads have effectively disappeared for a number of years now for those who use a sensible approach to ad blocking (i.e. a combination of ingress blocking, DNS blacklists and browser-based blocking). This could change if content providers start using different approaches to ad insertion - e.g. video ads merged into the original content, ads as part of original page content - but even those avenues will be neutered within not too long. It probably makes sense for ad purveyors to not fret too much over ad blocking users since these users often react negatively to advertising and as such are better left alone.
In most cases I find direct ad insertion (as in ad sponsership of the creator) a lot less offensive than some algorythmetic insertion based on some unknown metric. At least then the creator has to decide if the ad they are running is acceptable in their product.
That isn't ad insertion but sponsorship. What I mean is for the server to present a single video stream which does not contain markers to identify advertising content, more or less the way many netcast ads are inserted into the audio stream.
