> This would mean that nearly everything would have a paywall.

Now everything has ads and is SEOed to hell. And everyone used Ad Blockers, so the authors still get nothing.

Ive seen freemium services now, that used to be 'free but ad infested', and 'pay but no ads' - go to 'pay but you still get ads'.

I have no reason to think otherwise if Xanadu did the micropayments scam AND ads. And I would expect some online script would necessitate downloading and paying for ads to decrypt the content to enforce paying to get advertised at.