I think that’s an unfair reading of the blog post. They seem to suggest that advertisers can do targeting client side, using cookies, and without sending the cookies out. There are issues with this of course (enforcement, bandwidth), but it sound like a good compromise.
There is enforcement though. I think the idea is that once a standard for privacy-respecting ad personalization is in place, Google will be free to start taking more aggressive measures towards blocking more invasive tracking systems (like cookies and fingerprinting) without hurting their own advertising business.
