I want unsolicited ads to not be targeted for several reasons:
1) I don't want people to necessarily infer my interests/character based on ads they see when I'm just browsing the web. "Dude, why do you have porn ads all the time when you browse the web?"
2) I don't need to be sold to on a constant basis. Unless I'm in the market for something, I generally would prefer to not be sold to. Selling me something I'm sure to not care about, e.g., IQ tests, are almost the same as no ads. Showing me well-targeted ads are more likely to prove to be a distraction.
3) Privacy. I'd really prefer no one to have information that associates my account with specific information. It's hard to avoid today, but to the extent that I can reduce it, I will.
With that said, solicited ads are fine. If I do a search, x% of the time I'm looking for a product to purchase. I don't mind it then. Many of the websites I read, e.g., Engadget, are almost ad sites in that the content is generally about product for me to buy or use. And Android ads on Engadget are fine. They're not specifically targeted to me, but the demographic of people reading Engadget.
Every now and then I see a perfectly targeted ad. like the other day I saw one for a chamber music concert a bus ride away. I saw an awesome concert and the venue got an extra sale. If that had been a random IQ test ad, I would have missed an awesome experience.
TL;DR targeting is better for everyone.
Re (3), that sucks. If they're collecting and associating data with your account, but just not displaying the ads, I think that's a problem. Opting out should opt you out of associating data with your account.