There have been numerous articles debating ad block, ads sucking, etc. Instead of arguing about the way things are (we can't change that), let's talk about the future:
How can we make ads not suck?
Google does well because the ads shown on search bring forth some form of utility. List as comments how ads could "not suck". Maybe a long list of grievances will prompt things to somehow get better. It's better than complaining and arguing with each other.
2) Make ads relevant. I'm a happily married stay-at-home dad. I'm not interested in dating ads, but ads for better bottles could get my attention. Keyword-driven or site-demographic-driven ads are a start. As dpcan suggested, browsers could allow us to tag ourselves and our interests, which would be even better.
3) Get rid of common annoyances: flashing ads, ads that eat CPU and grind my browser to a crawl, ads on sites I might visit from work or with my kids that aren't safe for work/kids, popups/popunders, ads that block my view of the content I'm looking for, and misleading ads. (Again, if you're a host, vet your ads!)
4) Do not compromise user privacy. Don't track my browsing; base ads off of the site I'm on or information I voluntarily tagged myself with.
Many of the webcomics I read use Project Wonderful, and they seem to have a pretty good model. I regularly see interesting ads, and almost never see offensive ads, scams, or CPU killers.