Thus, there really are only two options here when it comes to the free tier on Spotify: "Endure our ad experience or no 'free' service for you." However, there is a 3rd option here when it comes to the free tier: Spotify fixes the currently-terrible ad experience on its service.
I'd be 100% fine with ads on Spotify if they were bespoke like the ads I see from https://carbonads.net. Their ads are relevant, tasteful, and unobtrusive. Oddly, I end up paying more attention to Carbon ads than I've ever paid to a Spotify ad.
Sadly, Spotify is only offering consumers two options without any hint that they've even considered that they themselves could do something to address the issues underlying their customers' use of ad blockers.