If people use it en-masse, probably negatively, but most likely they're betting few people will use it, just like how few people (almost no one I know) 100% go through with account deletion. The reality is there is no compromise for privacy. They build tools that help you either lose all value from facebook and retain your privacy, or relinquish your privacy to continue using facebook. It's not so much privacy forward tooling as it is a constant reminder they have a gun to your head.
Well, GDPR makes forces them to make the tracking features opt in, so they have to collectively convince EU users to turn on the tracking as opposed to hoping the people won't disable it.
They do this through a few devious practices, such as the spin doctoring discussed here. One other thing that they do is instead of the option being a check box, it is a selection between two radio buttons and you explicitly have to choose one of them. I suppose this is actually a violation of the GDPR, since it should be disabled by default.
You don't lose value from facebook at all by not opting in. "Show ads that are relevant to me," is an arrogant statement. The actual statement is "Track my browsing to show ads that Facebook believes are relevant to me." I don't use Facebook for the targeted ads, I use it to infrequently receive news about people I know spread out across the globe.
What difference does it make? They wouldn't lower their rates and a zillion people are still on FB so advertisers are going to buy the slots regardless. "Ad targeting" is not something that people outside of the niche of advertising economics care about.
Well, I understand that Facebook will try to extract as much value from advertisers as possible as well, testing the price they're willing to pay based on the conversions that advertiser hopefully are tracking accurately.
I more was curious of whether the history cleared with Clear History are primary markers for ad targeting or if other data is used, and in reality if enough users don't clear their data but have similar data fingerprints (the non-Clear History data) then Facebook could still present assumptions to target by for those who do clear their history regularly, e.g. it will be a moot point up until say 40% of people regularly are clearing their history and therefore can no longer accurately enough make those assumptions.
wonder if and how this impacts their ad targeting abilities?
Not at all, the NN that does ad targeting has already been trained on the data. Deleting it will make no difference (assuming you believe they actually will delete it)