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I'm not going to go back over the issues here, but just state my belief on the the approach the industry should take from here: 

• explain to consumers what is being tested - and tell them if they are affected;
• educate them on the advantages this type of targeting has for them and site publishers
• tell them exactly how their identities are protected, and
• allow them to opt-out.

However, I do believe behavioural targeting is acceptable and useful - after all, it has been around longer than the current hoo-ha in the press. The Economist has a sensible piece on it this week - "Not necessarily a bad idea."