Customized Advertisement

So we all know that major Internet advertisers use our browsing trends to adjust their which ads to show. For about the last few months, Facebook has gone to another level and has added more context in them. A few examples:

In both cases, they both took information from my profile (mostly likely public to everyone) and let advertisers target me. The first one is particularly interesting since it has two pieces of information, where I am from and where I currently am. A few months ago, I got an ad (which I didn't capture) that had something about being a UConn Husky fan in Indiana. While the shirts are decently personalized, it feels cheap and like it was concocted for pure profit. .I'm a simple man with simple fashion styles; words don't do it for me.

ESPN has also started using similar targeting techniques, using "like"s most likely:

That's Facebook's advantage with advertising. They have genuine topics that you have interest in because you specifically state what you "like" (in creating your profile and while using Facebook). That's what Google+ and their +1's attempts to do, but for the majority of the time, Google uses algorithms based on your browsing behavior to decide what advertisements to display to their users.  

How do you feel about this type of targeted advertising? Will it motivate a reduction of social network usage? Or do you think it's going to create a better experience?

Update:
Maybe Facebook doesn't know my gender?