Amazon Prime Video is not much better. We recently got an ad for an all black dating site. I’d expect them to guess our ethnicity a bit better (and the content was as 1950’s cracker white as can be), but ignoring that, they were literally selling us diapers a while back, and the kids have their own video profile. Based on our purchases, it’s not physiologically plausible that only one adult lives in the house.

Given how bad the output of ad targeting infrastructure is, I wonder who the “real customer” of it is.

Logistics? Intelligence agencies?

It's funny that we used to laugh about pirate websites having those kinds of ads, but the difference now is just that it's "ok" videos instead of banners drawn using MSPaint.

Sure but I don't think the companies buying ad time on YT are generally FAANG.