You know things, you do!

My take is corruption. We are so prone to short-cuts, you'll find them everywhere. A client will want a great ad for the price of a cheap one.
An ad company will want to maximize its profits, this by underpaying staff, minimizing costs while over billing.
Add this to a populace that pirates and opts for the cheapest products, and you have a kitchen that churns out the crappiest of things. Ads included.

My take is, to get great, on our own, it will take another two or three generations. Even our 'Nairobi Half Life' Oscar nominee is not entirely our own

Having worked in an ad agency, I can attest that you've hit the nail 100% on the head. It's still continuing to today and that's why I know there's a lot of potential and opportunity for start-ups and new investment in the ad industry. Because as most of you have earlier noted, creativity is lacking yet that's all businesses pay ad agencies for.

That's what makes marketing to this generation interesting.

Is marketing to children ethical?

Depends on the maturity of the kids.
Marketing anything to kids, whose world revolve around want want and more want is unhealthy.
A child thinks about now/today and desires to fulfill that cz tomorrow is not in their vocabulary.
But kids needs freedom of expression and choice.
That must be exercised in a guided manner.