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This is more relevant for Lemmy than client apps, but the problem with relying on ads is that you then become beholden to the ad-buyers.
I think that can be mitigated by operating as a non-profit that is not seeking to launch a multi-billion IPO at some point in the future, however. Decentralization is the answer to the "growth problem" that the last decade of failed tech investments has constantly run into.
Depends on what you mean by beholden to them. Unless you're partnering directly with certain ad providers it's pretty much plug-and-play: you can just choose to not optimize for serving ads.