Honest advertising can work. I agree with you regarding the type you are talking about, however there is a more simple form of advertising that just let's people know a certain thing or store or special deal exists. It isn't there to create an image, but to show that store Y carries X for less than store Z or to show that product A out performs product B with straight forward testing. The advertising world would still exist just fine doing this sort of work.
The companies that make and sell things could care less about us. I've found more and more companies are catering to what I call the "moron majority". Products becoming cost reduced and cheaped etc because the majority doesn't care or even notice. I believe that this is key to why cars offered in this country are the way they are compared to those offered overseas.
Also, there is a mentality in US corporations that everything is marketing, not product. The product itself simply doesn't matter to people who are in charge. They only care about the marketing spin and selling it. Convincing people they need the latest crap.
Water. I get strange looks when a place doesn't carry what I drink and I then opt for water.