Sounds like the XMB was made uglier to accomodate ads. Anybody, have any suggestions on how to fix it?
That's an explanation that doesn't really cover everything that was changed, or covers them poorly. It's why PS store icon shows ads, or why there's a 'What's New' tab (which was there already, but less intrusive as the much more ugly 'ticker'). It doesn't really explain why the Friends List was changed the way it was, or why the font was made bigger.
IMO the most valid complaints about this change aren't about the ads, or the store, since you can turn off 'what's new' by default and can ignore most icons by passing them by quickly. It's the strange changes like blanking out other XMB icons after a short time, it's the solid-backgrounded friends list. As well as the 'this isn't really what people have been asking for' argument, which is more valid with every update. UI-wise, hopefully we'll be seeing refinements like we have for the PS STore, which IMO has been getting a slicker and slicker interface, so I'm slightly positive.