Mmm, you're the one who brought the word 'intrusive' into the discussion. I happen to be agreeing with you about increasing intrusiveness.
I don't think "arms race" is a fallacy. Instead of advertising, think security for a moment. We all know browser venders are in a perpetual race against phishers and botnets and so on. So when Firefox came along, it billed itself as being "safer" than MSIE. Now think of pop-up ads. The browser vendors do indulge us in an anti-intrusive advertising race when the browsers block pop-up windows by default. My personal techniques against intrusion just happen to be a few steps ahead of Aunt Sally Sue's.
I don't think "arms race" is a fallacy. Instead of advertising, think security for a moment. We all know browser venders are in a perpetual race against phishers and botnets and so on. So when Firefox came along, it billed itself as being "safer" than MSIE. Now think of pop-up ads. The browser vendors do indulge us in an anti-intrusive advertising race when the browsers block pop-up windows by default. My personal techniques against intrusion just happen to be a few steps ahead of Aunt Sally Sue's.