if advertisers did this, they have to somehow pay out to the consumer something of worth - free stuff. otherwise, i m not gonna let an advertiser beam anything into my field of view!
Exactly. If the price is right, people will view advertisements. It's really as simple as that. So the question of whether advertisement will win or disappear depends on whether advertisers will be willing to pay what consumers demand in return for viewing the ad in question.
How the economics of this will change is very hard to predict, IMO.