You say that as if any advertisements/promotion of any kind - anywhere - is a bad idea? I'm aware some heinous things have been done in the name of selling stuff but you cannot believe the the ENTIRE concept of promoting something is a bad idea??
That's akin to saying that the entire concept of Copyright is rubbish - just because it's an idea which has seen much abuse!?
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Don't put words into my mouth. There are lots of things necessary and undesirable. In-game ads are not necessary and not desirable.
Ask yourself this: why is prostitution bad? If you're going to play devil's advocate and say it's not bad then our points of view won't ever mesh and this debate is fruitless.