Advertising is just a subset of a larger medium. It's a fully generic channel. Psychological manipulation is abusive and is often the tactic used by advertisers in order to see a return on their advertising spending.

I feel this means you can have ads, but, you really do need a large scale entity intelligently policing them or the tendency will constantly be towards abuse. On the balance, it is probably more efficient to just ban them, but many nations recognize the right to free speech and have arrived at the conclusion that advertising is included under that umbrella.

So, we probably need to make ads prohibitively expensive, and legally risky, such that the volume of them decreases dramatically.