Hate to see it but... it makes sense.
It's wrong, sure, in many ways (privacy, ecology, ethically depending on the dataset) but if there is 1 application where generative AI ads would make sense is through a personalized stream. So... yes it's bad, consumers might reject it, but it's not the actually dumbest way to use a terrible technology.
To be clear, again, I 100% hate it but if I was a greedy Netflix stakeholder I'd think "Hmmm yes, maybe!".