I didn't intentionally buy a mobile add machine. I didn't intentionally buy a direct conduit to spending money at Apple (iTunes Store or App Store). I bought a phone that could surf the web, hold my PIM information, and run the particular applications that I select. I don't see the "value added" to my personal user experience with iAd. I'd rather buy an unsubsidized phone, ad-free apps and pay for what I actually use. They had better post in BIG letters which apps will now contain adds so I can avoid them.
These things are getting to be like packaged cable TV, where they bundle a bunch of crap in with what you want, to subsidize the crap you don't watch. You have to pay for the 90% crap to get the 10% you want. Or DVD's you buy, where you have to sit through 6 previews, some even for TV shows, to get to the DVD content you purchased. Disney is particularly horrible about this. I really don't want to see an iAd on how to lower my mortgage payment or get out of debt, every tenth time I check the weather report or a stock fund.
I bet we see some successful or unsuccessful lawsuits at some point when someone claims the new OS substantially changes the product they purchased in a material and substantial way, thereby altering the basic nature of the product originally purchased. Maybe they will offer a second OS 4 that lets you opt out of iAd all together. Kind of like Microsoft has to offer multiple browsers as part of Windows in Europe? Just thinking out loud.
If it gets to where I have to jailbreak it to get what I feel I want in a phone, I'll just sell it. (Or blend it!!!)