> The goal is for display ads to not suck to the point where Adblock, Adblock Plus, and Ghostery are required.

Adblock (not plus, nor ghostery who work respectively with and for advertisers) is required not because ads suck (they do) but because ads are a major privacy issue.

> Google won search advertising because ads were relevant, looked good, …

Google won search advertising because google won search and because they refused to outsource their advertising business to third party advertising networks, notorious for their cluelessness and mindlessness.