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Targeted advertising is a huge no. No more of that.
Static advertising I can accept, but then who's responsible for vetting ads? I don't want scams displayed everywhere.
Devs definitely need ways to support themselves and sustain development. I've shared this screenshot from the app Secure Tether before:
I like to chip in a few bucks to my most used apps/services that are donationware, but after all the middlemen take their cut, the devs are left with peanuts. This IMO is the biggest hurdle when it comes to online monetization. A less expensive way to donate will certainly help.
Additionally, there are people who cannot or will not pay for apps, and I don't want to exclude them from being able to use an app/service they need.
Monetization like how Reddit Gold was and how Discord Nitro is are some of my favorites. Few extra perks and cosmetic features for paying users. Free users are still able to use the main product at no cost and you can gift them Gold/Nitro if they aren't able to purchase it themselves. I don't know how that would translate into an app store model though.