Can ads not be used responsibly? Must apps with embedded ads be referred to as "infested"?

As long as there are no true mobile flatrates at a reasonable price (1 Gigabyte with reasonable bandwidth a month? Today I downloaded an update for an android game that was > 1.5 Gigabyte) and as long as mobile networks are overburdened all the time, any ad on a mobile device that is not just text is irresponsible.

I have yet to see an app with ads that didn't also demand a pile of permissions it shouldn't otherwise have (location, phone information, network activity for an otherwise offline app, notifications, etc) just to make the ads more valuable.

Economic forces always push ad use towards "annoying."

Do they, really? Would that not result in less revenue as people move to your less-annoying competition?

The less-annoying competition pays less, and end users don't have a choice of ad "vendors"; only app authors have that choice. App authors will choose whatever maximizes revenue; if more annoying ads drive off a few users but bring it more revenue from the remainder, the app will use more annoying ads.

If it did everyone would use chrome/firefox with adblock. A huge portion of the population seems to put up with all the ads thrown at them.

I didn't say it would push things to infinitely annoying. But the needle gets stuck leaning that way.