This seems to be a common solution. I don't think it's realistic and is entirely too optimistic about the information processing capacity of individuals in society at large.
At the end of the day it's too much information for people to understand, handle and sift through to be a tractable solution.
What would end up happening is basically what we have now, consent and data decision-rights end up being proxied by third party organizations, and they attempt to segment the market and find defaults. It would just come right back around to what we have, only with different technology.
Instead, you could legislate advertising to be very restrictive. I think the less systems of paid influence that exist in the world the better, so I wouldn't cry for the demise of the advertising industry.
The tech industry needs to find a new revenue source anyway, might as well just go ahead and force the issue.